Petrol, diesel price hike likely as oil firms bleed:Crude oil at 4-year high amid Hormuz tensions, rates unchanged since 2022

An increase in petrol and diesel prices in the near future cannot be ruled out, news agency PTI reported on Friday, May 1, citing government sources, as state-run oil companies continue to absorb losses from a nearly 4-year freeze in retail fuel rates despite a sharp rise in global crude oil prices. International crude prices climbed to a 4-year high of $126 per barrel earlier this week before easing slightly, though they remained above $110. The surge comes amid restricted ship movements through the Strait of Hormuz and escalating tensions between the United States and Iran, with diplomatic efforts stalled. Oil firms hold retail prices despite losses Earlier in the day, Indian Oil Corporation (IOC), speaking on behalf of the industry, said petrol, diesel, and domestic LPG prices have not been increased despite rising global energy costs. However, state-owned oil firms have raised prices of commercial LPG, industrial diesel, 5-kg LPG cylinders, and jet fuel supplied to international airlines in line with input costs. Mounting losses for state retailers Analysts had previously indicated that fuel prices could rise by ₹25–₹28 per litre after polling for the West Bengal Assembly elections concluded on April 29. Crude oil, which averaged about $70 per barrel last year, has surged to over $114 this month. According to a senior oil ministry official, state-run fuel retailers are currently incurring losses of around ₹20 per litre on petrol and nearly ₹100 per litre on diesel, as pump prices have remained unchanged since early April 2022. However, according to government data, in the first 9 months of 2025-26, the country’s four leading oil companies earned a total profit of ₹1.37 lakh crore, that is, ₹116 crore every day. Strait of Hormuz disruptions add pressure Global oil prices spiked after military tensions escalated following US and Israeli strikes on Iran on February 28 and Tehran’s retaliatory actions, which disrupted traffic through the Strait of Hormuz, a key route handling roughly a fifth of the world’s oil trade and significant volumes of liquefied natural gas. No immediate decision, but pressure builds Despite mounting losses, there has been no official decision yet to revise retail fuel prices. A senior official had earlier said there were no immediate plans to increase rates, even as under-recoveries widened. Retail prices in Delhi currently stand at ₹94.77 per litre for petrol and ₹87.67 for diesel. ​