Hyderabad: Oil marketing companies announced that fuel prices hiked by Rs 3 per litre across all variants on Friday due to the ongoing West Asia crisis and rising crude oil prices. The revised rates took effect immediately across the country. Companies said growing under-recoveries and higher import costs forced the increase.
In Delhi, petrol prices rose by Rs 3.14 per litre to Rs 97.77. Diesel prices also increased by Rs 3.11 per litre. In Hyderabad, petrol prices reached Rs 110.78 per litre, while diesel prices climbed to Rs 98.90 per litre. Oil companies also raised compressed natural gas prices by Rs 2 per kilogram. Consequently, CNG prices in Delhi touched Rs 79.09 per kilogram.
Officials said companies continued selling fuel at unchanged retail rates despite rising crude prices. According to Sujata Sharma, combined under-recoveries on petrol, diesel, and LPG reached nearly Rs 30,000 crore every month. She stated that companies absorbed major losses to avoid sudden price shocks for consumers.
Fuel prices hiked as crude oil costs surge
Union Petroleum Minister Hardeep Singh Puri warned that prolonged crude oil increases could erase FY26 profits of state-run fuel retailers. Speaking at the CII Annual Business Summit 2026, he said companies were losing nearly Rs 1,000 crore every day under current market conditions. He added that combined quarterly losses could reach Rs 1 lakh crore if crude prices remained elevated.
Global crude oil prices crossed the $100 per barrel mark amid fears of supply disruptions linked to the US-Iran conflict. Puri said one quarter of losses at prevailing crude levels could wipe out the entire FY26 profit after tax of state-run retailers. Industry estimates indicated that Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum could report combined losses of nearly Rs 1.2 lakh crore in the first quarter of FY27.
The Centre had earlier reduced excise duties on petrol and diesel to ease consumer burden. However, officials said the government sacrificed nearly Rs 14,000 crore in monthly revenue after the cuts. They added that financial pressure on fuel retailers continued to rise because of higher crude oil costs and global instability.
