Petrol, Diesel & LPG Price Hike: Will Fuel Prices Rise Again? OMCs Urge Government for Revision

New Delhi | May 2, 2026

The Indian consumer may soon face another wave of inflation as global geopolitical tensions push crude oil prices to record highs. State-run Oil Marketing Companies (OMCs) have approached the government, seeking a price hike for petrol, diesel, and domestic Liquefied Petroleum Gas (LPG) to offset mounting operational losses.

Crude Oil Surge: Prices Cross $126 Per Barrel

The international oil market is witnessing a sharp spike, with crude prices breaching the $126 per barrel mark. This surge follows signals from U.S. President Donald Trump regarding an intensified naval blockade of Iran. Such a move has raised fears of a prolonged closure of the Strait of Hormuz, a critical chokepoint for global oil supply, leading to severe supply chain anxiety.

Heavy Losses for OMCs (IOC, BPCL, HPCL)

Public sector giants like Indian Oil (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) are reportedly facing significant under-recoveries. While global prices have skyrocketed, retail prices in India have remained largely decoupled from the market for several months.

Global price trends since February:

• Diesel: Prices have surged by 119%.
• Petrol: An increase of nearly 69%.
• LPG: International rates are up by over 40%.
• ATF (Aviation Turbine Fuel): Prices have nearly doubled.

The Government’s Stance

Despite the pressure from OMCs, the government is proceeding with caution to protect the common man from an immediate price shock. Sujata Sharma, Joint Secretary at the Ministry of Petroleum, stated that while international markets are highly volatile, the government’s effort is to minimize the burden on consumers. For now, reports of an immediate hike in retail petrol and diesel have been downplayed, though experts suggest this may not be sustainable if the Gulf crisis persists.

What has become expensive so far?

While retail petrol and diesel prices have remained relatively stable since April 2022, other segments have already felt the heat:

1. Commercial LPG: Recently witnessed a massive hike of ₹993 per cylinder.
2. Aviation Fuel & Bulk Diesel: Prices for these sectors have been adjusted upward multiple times.
3. Domestic LPG: Only a marginal increase of ₹50 per cylinder has been seen so far, leaving a large gap between cost and retail price.

Disclaimer: This article is for informational purposes only and is based on current market trends and news reports. For official price updates, please refer to notifications from the Ministry of Petroleum and Natural Gas or respective oil marketing companies.