EXCLUSIVE: Petrol, diesel price hike may be considered amid rising crude oil prices; govt reviewing situation

State-run oil marketing companies (OMCs) are facing pressure from rising global crude oil prices, leading to under-recoveries on the sale of petrol and diesel, according to government sources. The matter has reportedly been discussed at the highest levels, with officials closely monitoring the impact of elevated crude prices on fuel retailers.

Sources indicated that the possibility of a hike in petrol and diesel prices cannot be completely ruled out at this stage. Discussions are underway between the Finance Ministry, the Petroleum and Natural Gas Ministry, and oil marketing companies to assess the situation and evaluate possible options.

Officials said multiple aspects related to fuel pricing and market stability are currently under review. However, no final decision has been taken so far regarding any revision in retail fuel prices.

The government is understood to be taking a cautious approach, with consumer interest remaining a key consideration in any future decision. Authorities are also keeping an eye on international developments that could influence crude oil prices in the coming weeks.

According to sources, there is an expectation that crude oil prices may ease if global conditions continue to improve. Positive developments on the geopolitical and economic front could help stabilise international oil markets, potentially reducing pressure on domestic fuel retailers.

Oil marketing companies have been dealing with fluctuating crude prices for the past several months. Since India imports a major portion of its crude oil requirements, any sharp movement in global oil prices directly impacts the cost of fuel in the domestic market.

At present, petrol and diesel prices have largely remained stable across major cities, despite volatility in international crude benchmarks. However, industry experts believe sustained high crude prices could eventually force a reassessment of retail fuel rates if under-recoveries continue to widen.

For now, the government has not announced any immediate change in fuel prices, but the ongoing discussions suggest that the situation remains under active review.