Petrol, diesel, and LPG cylinder prices are likely to go up, with the government actively weighing a hike as global crude oil prices climb on the back of escalating tensions in West Asia, top government sources said.
Petrol and diesel prices may rise by around Rs 4–5 per litre, while domestic LPG cylinders could see an increase of Rs 40–50. If approved, it would mark the first hike in petrol and diesel prices in nearly four years retail rates have remained largely frozen since 2022. IndiaToday.in had earlier reported a strong likelihood of a fuel price increase, citing mounting pressure on oil marketing companies (OMCs).
The government had, however, ruled out any immediate hike right after the conclusion of the assembly polls.
West Asia War Drives Crude Surge
The immediate trigger is the sharp rise in global crude oil prices, driven by the ongoing West Asia conflict. Concerns over supply disruptions, shipping risks, and prolonged regional instability have pushed benchmark crude prices higher in recent weeks, increasing input costs for oil marketing companies.
With retail fuel prices held steady, OMCs have been absorbing losses through under-recoveries. The elevated crude prices are also widening the government’s fiscal burden, leaving limited room to protect consumers through subsidies or tax reductions.
Decision Within 5–7 Days
Government sources said a call on the price hike is expected within the next 5–7 days, as officials continue to monitor the situation in West Asia and its ripple effects on global energy markets. No final decision has been taken yet.
Internal deliberations are ongoing, with multiple options on the table including the timing and scale of any increase. Officials said the government is trying to balance the financial strain on oil companies against the risk of stoking inflation.
Any increase in fuel and LPG prices is expected to add to household expenses and transportation costs, making it a politically sensitive decision at a time of sustained global uncertainty.
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