Petrol and diesel prices in India have been raised for the fourth time in 11 days, helping major oil marketing companies reduce mounting losses amid rising global crude costs.
New Delhi: Petrol and diesel prices across India have been increased again, marking the fourth hike in just 11 days. The latest revision, averaging around ₹2.7 per litre, follows earlier increases on May 15, May 19 and May 23.
The repeated hikes reflect continued pressure on oil marketing companies as global crude oil prices remain elevated.
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OMCs move to reduce mounting financial losses
State-run oil marketing companies (OMCs) including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have been under severe financial strain due to rising crude costs and lagging retail fuel prices. The recent price adjustments are aimed at narrowing under-recoveries and improving cash flows.
Global crude volatility and supply concerns drive pressure
Industry sources point to sustained volatility in international crude oil markets as a key factor behind the pricing pressure. Disruptions in global supply chains and geopolitical tensions affecting key oil shipping routes have contributed to higher import costs for India, which remains heavily dependent on crude imports.
Daily losses cut as fuel margins improve
According to estimates cited by analysts, OMCs were previously facing daily losses of around ₹1,000 crore. The recent series of price hikes has helped reduce a significant portion of this burden. Officials have indicated that earlier revisions alone helped recover nearly a quarter of daily losses, with further gains from subsequent increases.
Analysts estimate that every 50 paise per litre increase in marketing margins can lift EBITDA by around 7% for IOC, 8% for BPCL and 11% for HPCL. Based on this model, the latest average hike of ₹2.7 per litre is expected to provide a notable boost to profitability and help stabilise near-term earnings.
Nearly half of losses recovered through phased hikes
With four consecutive price revisions in 11 days, OMCs are estimated to have recovered around 44% of their earlier losses. The cumulative impact of these hikes is improving financial visibility for the sector, although companies remain exposed to fluctuations in global crude prices.
Despite the relief from recent price increases, the outlook for OMCs remains closely linked to international crude movements. Any sustained rise in global oil prices could once again pressure margins, while stability in crude markets would support continued recovery in earnings.
Published: 25 May 2026, 07:27 am IST
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