Petrol and Diesel Prices May Rise Soon as Companies Lose Rs 30,000 Crore Every Month
Petrol and diesel prices across India did not change on Sunday, May 10. However, experts believe that a price hike might happen very soon. Oil marketing companies are currently facing huge financial pressure. These companies are losing around Rs 30,000 crore every month.
The main reason for these losses is the high cost of crude oil in the global market. While the cost of buying oil has gone up, the retail prices for customers have remained fixed. The government has been trying to keep prices stable, but the rising costs are making it difficult for companies to manage.
Possible Price Hike Before May 15
Reports suggest that petrol and diesel prices could increase before May 15. Experts say the government might not increase the base rate of fuel. Instead, they might add a “cess” to the prices. A cess is a type of extra tax used for specific purposes.
Dr. VSRK Prasad, the founder of the Indian Institute of Petroleum & Energy, shared his views on this situation. He mentioned that if the price goes up through a cess, it might stay high for some time. However, the good thing about a cess is that the government can remove it easily when the global situation gets better.
Global Oil Crisis and Impact
The global energy market is currently very unstable. The ongoing conflict between the United States and Iran is a major factor. This war does not seem to be ending soon, which keeps oil prices high. Dr. Prasad noted that crude oil prices have already tripled compared to the levels seen before the war.
There are concerns that crude oil prices could reach USD 150 per barrel. If this happens, it will lead to higher transportation costs and inflation across the country. This means the price of daily goods could also go up.
Current Petrol and Diesel Prices in Major Cities
As of now, fuel prices vary from city to city. In New Delhi, petrol is being sold at Rs 94.77 per litre. In Mumbai, the price is much higher at Rs 103.54 per litre. Other cities like Hyderabad and Kolkata also have high fuel rates.
Below is the detailed list of petrol and diesel prices in key Indian cities as of May 10:
| City | Petrol Price (Rs per litre) | Diesel Price (Rs per litre) |
|---|---|---|
| New Delhi | 94.77 | 87.67 |
| Mumbai | 103.54 | 90.03 |
| Kolkata | 105.45 | 92.02 |
| Chennai | 100.85 | 92.40 |
| Bengaluru | 102.96 | 90.99 |
| Hyderabad | 107.46 | 95.70 |
| Noida | 95.01 | 88.14 |
| Gurugram | 95.19 | 88.05 |
Why Companies are Facing Losses
Oil marketing companies (OMCs) are in a tough spot. They buy crude oil at high international prices but sell it at lower rates set by the government. Because they have not increased the prices of petrol and diesel recently, they are losing Rs 30,000 crore every single month. This financial gap is the primary reason why a price revision is expected before the middle of May.
Conclusion
While petrol and diesel prices remained steady on May 10, the situation could change within a few days. The combination of high crude oil costs and massive monthly losses for oil companies makes a price hike likely. Whether the government uses a cess or a direct rate hike, consumers should be prepared for a possible increase in fuel costs before May 15.
FAQs
Why are petrol and diesel prices expected to rise?
Prices are expected to rise because oil companies are losing Rs 30,000 crore every month due to high global crude oil costs.
When might the fuel price hike happen?
Experts suggest that the price of petrol and diesel could increase before May 15, 2026.
What is the price of petrol in Delhi and Mumbai?
In Delhi, petrol costs Rs 94.77 per litre. In Mumbai, it costs Rs 103.54 per litre.
How high could crude oil prices go?
According to experts like Dr. VSRK Prasad, crude oil prices could reach up to USD 150 per barrel due to global conflicts.