- By Chetna Shree
- Fri, 01 May 2026 09:02 PM (IST)
- Source:JND
- Government hints at upcoming petrol, diesel price increase.
- Fuel retailers face losses due to four-year price freeze.
- Global crude oil prices reached a four-year high.
Petrol, Diesel Price Hike: A government source on Friday said that an increase in petrol and diesel prices is likely in the near future. This remark comes amid mounting financial losses linked to a four-year freeze on retail rates, which has kept prices steady despite a surge in global crude oil prices.
Crude Prices Hit Four-Year High
According to news agency PTI, international crude oil prices this week reached a four-year high of USD 126 per barrel. While the prices have since fallen slightly, they remain above USD 110 per barrel. The average price this month has been over USD 114, compared to around USD 70 last year.
Government sources told PTI, "The possibility of a petrol and diesel price hike in the near future is not ruled out."
A senior official from the Oil Ministry said last week that the state-owned fuel retailers are currently facing losses of approximately Rs 20 per litre on petrol and Rs 100 per litre on diesel. Experts had earlier predicted a price hike of Rs 25-28 per litre after the end of voting for assembly elections in West Bengal on April 29.
US-Iran War
Tensions between the United States and Iran, along with shipping restrictions in the Strait of Hormuz, have sent shockwaves across global energy markets. Following the US and Israeli strikes on Iran on February 28 and Tehran's sweeping retaliation, this vital energy artery, which handles nearly 20 per cent of global oil trade along with significant volumes of liquefied natural gas, has effectively been shut down.
While state-owned oil companies have raised prices for commercial LPG, industrial diesel, and jet fuel, retail prices for ordinary consumers have remained unchanged.
Currently, petrol is priced at Rs 94.77 a litre in Delhi, and diesel costs Rs 87.67.
(With Inputs From PTI)