No hike in petrol, diesel prices despite crude topping $100 per barrel; govt wants oil companies to absorb shock

Petrol, Diesel Price

• India keeps petrol and diesel prices unchanged despite oil surge
• OMCs told to absorb impact as crude prices top $100 per barrel
• OMC profits may fall if pump prices stay frozen

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Petrol and diesel prices in India are unlikely to be increased immediately despite the sharp surge in global crude oil prices above $100 per barrel, as the government wants state-run oil marketing companies (OMCs) to absorb the impact for now, according to reports.

CNBC TV18 reported citing unidentified government sources that pump prices of petrol and diesel will not be raised at present, and OMCs may have to make do with lower profits amid the spike in international oil prices.

The development comes after crude oil prices surged sharply on escalating hostilities in the Middle East and growing concerns over supply disruptions through the Strait of Hormuz -- a key global oil shipping route.

West Texas Intermediate (WTI) crude jumped 17.4 percent to $106.8 per barrel, while Brent crude gained 15.65 percent to $107.2 per barrel, pushing prices above the $100 mark for the first time since 2022. The surge has rattled global financial markets, with Asian stocks falling sharply in early trade on Monday as investors assessed the inflationary risks of a sudden spike in energy prices.

Despite the global oil rally, domestic fuel prices in India have remained unchanged so far. Petrol in Mumbai was priced at Rs 103.49 per litre, while diesel stood at Rs 90.01 per litre, both unchanged for the day.

India typically adjusts retail fuel prices in line with global crude movements, but the government has occasionally asked OMCs to absorb part of the volatility during periods of extreme price swings. With crude now trading above $100 per barrel, the pressure on OMC margins may rise if pump prices remain frozen in the near term.

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