Indian fuel retailers hold petrol and diesel prices despite rising crude costs
Petrol and diesel rates were unchanged across major cities as Brent crude reached $104.30 a barrel. ICRA estimates state-run oil marketing companies are losing about ₹530 crore a day while petrol, diesel and LPG retail prices remain frozen.
What happened
Indian state-run oil marketing companies · Petrol and diesel prices remained unchanged across major Indian cities despite crude’s rise, squeezing state-run fuel
Key facts
- National average petrol price: ₹111.21/litre
- National average diesel price: ₹97.83/litre
- Estimated OMC losses: ₹530 crore per day
- Brent crude: $104.3/barrel
- WTI crude: $92.41/barrel
What changed
Petrol and diesel prices remained unchanged across major Indian cities despite crude’s rise, squeezing state-run fuel retailers. ICRA estimates OMC losses of roughly ₹530 crore daily as retail prices for petrol, diesel and LPG remain frozen.
Why this matters
The prolonged retail-price freeze is a material earnings and cash-flow risk for state-run oil marketers as ICRA estimates daily losses of roughly ₹530 crore, making policy relief the key catalyst.
What to watch
- Brent crude sustaining above $100 per barrel or moving materially higher for more than two weeks.
- Reported daily under-recoveries and quarterly marketing-margin guidance from Indian Oil, BPCL and HPCL.
- Announcements on excise-duty cuts, state VAT reductions, subsidy transfers or oil-bond-like compensation.
- Any retail petrol, diesel or LPG price change after the current freeze.
- Rupee depreciation, which raises landed crude costs even if dollar-denominated oil prices stabilize.