Indian Oil Marketing Companies have raised petrol and diesel prices by Rs 3 per litre and CNG by Rs 2 per kg after reportedly enduring daily losses of Rs 1,000–1,200 crore since the Iran war began. Economists warn the move could add inflationary pressure as higher fuel costs ripple through transport, logistics and retail prices. With the Strait of Hormuz affecting crude supplies, April retail inflation edged up to 3.48% and WPI inflation rose to 8.3%, tightening India’s inflation outlook.
India’s first petrol and diesel retail price increase since 2022 has not reassured investors. HPCL and BPCL shares fell up to 3% after a up to Rs 3 per litre adjustment that analysts say barely covers rising costs. With Brent crude above $100 and West Asia tensions persisting, ICRA estimates oil marketing companies could still lose about Rs 500 crore daily even after the hike, implying enormous quarterly under-recoveries and renewed pressure on government policy.
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