Fuel and LPG cylinder prices are likely to be raised, with the government weighing a hike as global crude oil prices surge amid escalating tensions in West Asia, top government sources said.
Petrol and diesel prices may increase by around Rs 4–5 per litre, while domestic LPG cylinders could see a hike of about Rs 40–50. If approved, this would be the first increase in petrol and diesel prices in nearly four years, with retail rates largely frozen since 2022.
IndiaToday.in had earlier reported a strong likelihood of a fuel price hike, given mounting pressure on oil marketing companies (OMCs).
The government, however, had recently ruled out the possibility of an increase immediately after the conclusion of the assembly polls.
The trigger is the sharp rise in global crude oil prices, driven by the West Asia war. Concerns over potential supply disruptions, shipping risks and prolonged instability have pushed up benchmark crude prices in recent weeks, increasing input costs for oil marketing companies.
With retail fuel prices unchanged, oil companies have been absorbing losses, leading to under-recoveries. Elevated crude prices are also adding to the government’s fiscal burden, limiting its room to cushion consumers through subsidies or tax cuts.
DECISION ON PRICE HIKE IN 5-7 DAYS
Sources said the government is closely monitoring the evolving situation in West Asia and its impact on global energy markets. While no final decision has been taken, a call on a possible price hike is likely within the next 5–7 days.
Internal discussions are underway, with multiple options being evaluated, including the timing and extent of any increase. Officials said the government is trying to strike a balance between addressing the financial stress on oil companies and ensuring that any hike does not significantly push up inflation.
Any increase in fuel and LPG prices is expected to have a broader impact on household budgets and transportation costs, making it a sensitive policy call at a time of global uncertainty.
