Global oil shock: Petrol and diesel prices up by Rs 3 per litre, CNG gets costlier by Rs 2
New Delhi, May 15 (IANS/WISHAVWARTA) As oil marketing companies (OMCs) face mounting losses amid the ongoing West Asia crisis, they raised petrol and diesel prices by Rs 3 per litre each on Friday.
The revised rates came into effect immediately across the country.
In Delhi, petrol prices rose by Rs 3.14 per litre to Rs 97.77, while diesel became costlier by Rs 3.11 per litre.
Meanwhile, amid the Middle East crisis, oil companies have also raised CNG prices. Effective Friday, the price of CNG has increased by Rs 2 per kilogram. The new CNG rate in Delhi is Rs 79.09 per kilogram.
The OMCs continue to face mounting financial losses from keeping retail fuel prices unchanged despite surge in crude oil prices.
The combined under-recovery on petrol, diesel and LPG has reached nearly Rs 30,000 crore every month, according to Sujata Sharma, Joint Secretary in the Union Petroleum Ministry.
“Our OMCs are buying crude oil at higher rates but are not selling at corresponding rates to protect our consumers. This impacts their finances,” said Sharma.
She further said the Centre had already cut excise duties on petrol and diesel, sacrificing nearly Rs 14,000 crore in monthly revenue, but under-recoveries continue to widen,” she informed.
India’s state-run oil marketing companies (OMCs) are staring at the possibility of their entire FY26 profits being wiped out if crude oil prices remain elevated, Petroleum Minister Hardeep Singh Puri warned amid escalating tensions in the Middle East.
Speaking at the CII Annual Business Summit 2026 this week, Puri said the ongoing energy crisis triggered by the conflict in the Middle East has sharply increased pressure on Indian fuel retailers, with oil marketing companies currently losing nearly Rs 1,000 crore every day.
He estimated that their combined quarterly losses could touch around Rs 1 lakh crore if current trends continue.
The warning comes at a time when global crude oil prices have surged past the psychologically important $100 per barrel mark due to fears of prolonged supply disruptions linked to the US-Iran conflict.
“The financial stress on state-run fuel retailers has become so severe that a single quarter of losses at prevailing crude price levels could potentially erase their entire profit after tax for FY26,” the minister stated.
The three major public sector oil retailers — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum — are projected to report combined losses of nearly Rs 1.2 lakh crore in the first quarter of FY27 alone, according to industry estimates cited during the discussion.
