Petrol, Diesel Prices May Rise Soon: How Much More Could Consumers Pay?

Petrol and diesel prices in India could soon rise again as rising global crude oil prices and escalating tensions in West Asia continue to put pressure on oil marketing companies (OMCs) and on the country’s import expenses.

Experts believe the recent surge in Brent crude prices, which have crossed the $105 per barrel mark, may force fuel retailers to revise prices upward in the coming days. The growing uncertainty surrounding the US-Iran conflict and concerns about disruptions to the Strait of Hormuz — a key global oil transit route — have heightened fears of higher fuel costs worldwide.

According to economists, India is approaching a crucial stage in fuel pricing as higher crude oil rates directly impact government finances, inflation and transportation costs. However, analysts suggest that any increase in petrol and diesel prices is likely to happen gradually rather than through a sudden, sharp hike.

Manoranjan Sharma, Chief Economist at Infomerics Ratings, stated that the current pressure is being driven largely by market conditions and rising import costs. He indicated that fuel price revisions are highly likely after May 15 if crude oil prices remain elevated.

Reports suggest that petrol and diesel prices may increase by around Rs 4 to Rs 5 per litre in the upcoming revision cycle. In addition, LPG cylinder prices could also rise by approximately Rs 40 to Rs 50 due to the sustained rise in global energy prices.

The potential increase comes at a time when consumers are already dealing with higher household and transportation expenses. Any rise in fuel prices could also impact the prices of essential goods and services across the country, as transportation costs play a major role in supply chains.

Oil marketing companies and the government are closely monitoring international crude oil movements before taking a final decision on fuel price revisions.