Despite repeated government assurances on price stability, petrol and diesel rates in India could be headed for a hike before May 15 as public sector oil marketing companies (OMCs) grapple with mounting under-recoveries. Industry estimates suggest these losses have surged to nearly ₹30,000 crore per month, driven by elevated global crude prices and limited domestic price revisions.

 

The ongoing conflict in West Asia has severely disrupted traffic through the Strait of Hormuz, a critical artery that handles nearly 20% of global oil supply. The prolonged instability has triggered a sharp spike in international energy prices, pushing retail fuel costs significantly higher across major economies.

 

Petrol prices have climbed to about ₹295 per litre in Hong Kong, ₹240 in Singapore, ₹225 in the Netherlands, ₹210 in Italy, and roughly ₹195 in the United Kingdom. In contrast, Indian retail prices have remained relatively steady, hovering around ₹95 per litre in several cities.

 

However, with OMCs absorbing sustained losses, pressure is building within the system for a correction. Any upward revision, if approved, could carry both economic and political implications in the weeks ahead.