Oil Marketing Companies (OMCs) have once again increased petrol and diesel prices by 90 paise per litre across the country on Tuesday, marking the second hike within five days. The move follows an earlier ₹3-per-litre increase on May 15, amid sustained pressure from elevated global crude oil prices.
However, despite these consecutive hikes, state-run fuel retailers — including Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited — are still estimated to be incurring significant under-recoveries on the sale of petrol, diesel and LPG.
Industry sources indicate that the earlier ₹3 hike helped reduce a portion of the daily losses, but did not eliminate the gap between rising input costs and regulated retail prices. The latest 90-paise increase is expected to further narrow this gap, though losses remain substantial.
With global crude prices staying firm due to geopolitical tensions and supply-side uncertainties, OMCs continue to face pressure on their marketing margins. Estimates suggest that the under-recovery per litre remains in double digits, highlighting the limited impact of the recent incremental hikes.
At the same time, a full pass-through of rising fuel costs to consumers remains unlikely in the near term due to concerns over inflation and its cascading effect on transportation and essential commodities.
Going forward, experts believe that the government may continue with calibrated price revisions to strike a balance between protecting consumer interests and ensuring financial stability for OMCs.
The future course of fuel pricing will largely depend on global crude oil trends, currency movements, and potential policy interventions on duties and subsidies.
