Fuel Price Increase: Oil companies are incurring huge losses on petrol and diesel. According to a report, the possibility of a post-election increase in fuel prices has increased.
Petrol and diesel may become expensive after the elections.
Petrol Diesel Price Hike: The ongoing US-Iran dispute is affecting Indian oil companies. Selling petrol and diesel is becoming a loss-making business for state-owned oil companies. Currently, they are incurring a loss of approximately ₹18 per liter on petrol and approximately ₹35 per liter on diesel.
Despite rising costs, retail prices have remained unchanged, leading to ever-increasing losses for companies, raising the possibility of a further increase in oil prices.
Changes in crude oil prices
Petrol and diesel prices are determined according to a market-based system. However, Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited have not changed prices since April 2022.
During this period, crude oil prices have experienced significant fluctuations. Following the Russia-Ukraine war, crude oil prices surpassed $100 per barrel. In early 2026, prices briefly declined, reaching $70 per barrel. Subsequently, the situation in the Middle East has led to a resurgence in prices. Prices have consistently remained above $100 per barrel.
Oil companies are suffering heavy losses
In terms of statistics, last month, state-owned oil companies were losing around ₹2,400 crore per day. However, this loss has now declined to around ₹1,600 crore per day.
The government's move to reduce excise duty on petrol and diesel by ₹10 per liter is being cited as the primary reason for reducing losses. The government is taking such steps to offset the companies' losses.
Petrol and diesel prices may increase after the elections
According to a report by Macquarie Group, petrol and diesel prices may rise later this month after elections in key states like West Bengal and Tamil Nadu conclude. The report states that there is a clear risk of higher pump prices after April.
This means that the government has kept prices stable for now. However, these prices may change after the elections, which will directly impact the pockets of ordinary people.
