IOC, BPCL and HPCL unlikely to raise fuel prices unless crude stays above $110
India’s oil marketing companies are unlikely to revise petrol and diesel prices in the near term despite Brent crossing $100 a barrel, according to sources. IOC, BPCL and HPCL face negative marketing margins and rising debt, but a sustained move above $110 for crude would be the likely trigger for a retail-price increase.
What happened
Indian Oil Corporation (IOC) · Despite Brent crossing $100 a barrel and rising OMC losses, sources say India is unlikely to raise petrol and diesel prices
Key facts
- Brent crude: $100.19/barrel intraday
- Indian crude basket: $108.91/barrel on September 8
- Petrol price in Delhi: ₹102.12/litre
- Diesel price in Delhi: ₹95.20/litre
- Cumulative fuel-price increases since May 15: around ₹7.5/litre
- Petrol marketing margin: negative ₹5/litre
- Diesel marketing margin: negative ₹23/litre
- Domestic LPG under-recovery: ₹200/cylinder
- OMCs' aggregate standalone debt in Q1FY27: ₹2.3 lakh crore
- OMCs' combined EBITDA in Q1FY27: negative ₹25,800 crore
Why this matters
The prolonged pricing squeeze may increase the appeal of balance-sheet partnerships, supply-efficiency investments and selectively timed consolidation opportunities across India’s fuel-retail ecosystem.