How Much Could Fuel Prices Rise?

New Delhi: Amid rising tensions in West Asia, global crude oil prices have been increasing, prompting the central government to consider a hike in petrol, diesel, and LPG cylinder prices, according to a report by India Today citing senior sources.

Petrol and diesel prices are likely to be increased by around ₹4–5 per litre. Meanwhile, domestic LPG cylinder prices may go up by approximately ₹40–50.

If the proposal gets approval, this would mark the first increase in retail petrol and diesel prices since 2022.

Although the government had earlier indicated that there would be no price hike until after the assembly elections, recent developments in the global oil market have led to a reconsideration, sources said.

The ongoing conflict situation in West Asia has triggered a sharp rise in crude oil prices. Concerns over supply disruptions, transportation risks, and prolonged instability have contributed to the surge. As a result, input costs for oil companies have increased significantly.

Oil marketing companies have been bearing losses due to prolonged stability in retail fuel prices, adding to financial pressure. Rising crude prices have also strained government finances, limiting the scope for subsidies or tax cuts to provide relief to consumers.

Decision Expected in 5–7 Days

The government is closely monitoring the situation in West Asia and its impact on global energy markets. While no final decision has been taken yet, a call on the price hike is expected within the next 5–7 days.

Internal discussions are underway, examining various options including the timing and extent of the hike. The government aims to balance reducing pressure on oil companies while ensuring that inflation remains under control.

If fuel and LPG prices are increased, it is likely to have a widespread impact on household expenses and transportation costs.

Source: Vartha Bharathi (Translated in English)