NEW DELHI: State-run fuel retailers are incurring losses of about Rs 20 per litre on petrol and around Rs 100 on diesel, the government said on Thursday, signalling no immediate plan to raise prices.“There is no such proposal under consideration,” the Ministry of Petroleum and Natural Gas said, dismissing speculation of a Rs 25–28 per litre hike after the ongoing assembly elections.At a briefing on the Middle East, where the US-Israel and Iran have been at war since February 28, petroleum ministry joint secretary Sujata Sharma noted the government had not raised retail rates despite “highly volatile” crude and LPG prices.Crude, which was about $70 per barrel last year, has averaged over $113 this month, she added, underscoring efforts to keep prices stable despite the sharp rise.Petrol and diesel prices have remained unchanged since April 2022, with state-run firms offsetting losses during high-price periods with earlier gains.India, which imports 88% of its oil, is now seeing under-recoveries on petrol and diesel due to higher global prices, Sharma stated.
Last month, the government cut petrol and diesel taxes by Rs 10 per litre each. According to Sharma, this was done to ensure the burden of high oil prices is not passed on to consumers. The government also imposed a levy on fuel exports to push refiners to prioritise domestic supply.Global oil prices surged after the US and Israel attacked Iran, followed by Tehran’s retaliation that disrupted the Strait of Hormuz, a key sea route handling about a fifth of global oil trade.Crude jumped from around $70 per barrel to $119 before easing, with Brent now at about $103–106.Despite a more than 50% rise in crude prices, retail fuel rates in India remain unchanged. Petrol costs Rs 94.77 per litre in Delhi, while diesel is priced at Rs 87.67.(With PTI inputs)
