Public sector oil companies implemented their third fuel price increase in 10 days on Saturday, raising petrol and diesel prices by 87 paise and 91 paise per litre respectively. According to NDTV, this latest hike brings the cumulative increase to just under ₹5 per litre, which remains lower than price increases seen in many other parts of the world since the war in West Asia triggered a spike in oil prices. The price of petrol now stands at ₹99.51 per litre while diesel costs ₹92.49 per litre.
Despite the recent price increases, public sector oil companies continue to face substantial losses from selling fuels below market rates. As reported by NDTV, PSUs are still experiencing an under-recovery of ₹13 per litre on petrol and ₹38 per litre on diesel (both pre-tax) as global crude prices remain above the $100 per barrel mark. The current price increases are part of efforts to offset mounting losses from selling fuels below market rates amid sharp rises in global crude prices due to supply concerns.
The fuel price increases have also impacted the compressed natural gas sector. According to NDTV, Indraprastha Gas announced a fresh ₹1 increase in CNG prices, taking it to ₹81.09 per kg in the capital, marking the second hike in this week. Prices in neighbouring cities of Noida, Ghaziabad and Gurgaon have also gone up, while prices of domestic LPG cylinders and piped cooking gas have remained unchanged.
Following the first price hike, the government indicated that the cumulative under-recovery on petrol, diesel and LPG had reduced by 25% from ₹1,000 crore to ₹750 crore. As reported by NDTV, the current price increases are part of efforts to offset mounting losses from selling fuels below market rates amid sharp rises in global crude prices due to supply concerns. During periods of high crude oil prices, both government and public sector oil companies endured immense economic pressure, with the government indirectly absorbing a price differential of up to ₹24 per litre on petrol and ₹30 per litre on diesel during the Hormuz crisis.
