BackECONOMY
Fuel retailers losing ₹20/litre on petrol, ₹100 on diesel as Iran war drags on
State-run oil marketing companies report under-recoveries on petrol and diesel amid rising crude prices tied to West Asia tensions. The government has cut excise duties to cushion consumers, while officials warn volatility could force price changes if instability persists. A government clarification says there is no plan to raise pump prices by ₹25-₹28 after elections.
Why It Matters
The story shows how geopolitical crises can impact domestic fuel pricing and how government policies aim to shield consumers while reserves and market dynamics adjust.
Timeline
10 Events
Last round of voting in ongoing state polls
April 24, 2026
The last round of voting in the ongoing state assembly polls is scheduled for April 29.
State-run retailers hold ~90% market share in domestic fuel retail
April 24, 2026
IOC, BPCL and HPCL together hold about 90% of the domestic fuel retail market.
Under-recoveries are not actual losses; market rates would raise prices
April 24, 2026
Under-recoveries are notional revenue losses. If fuels were sold at market-determined rates, petrol and diesel would be ₹114.77 and ₹187.67 per litre respectively in Delhi.
Ministry denies proposal to raise rates after elections
April 24, 2026
The petroleum ministry clarified that there is no proposal under consideration to raise petrol and diesel rates by ₹25-₹28 after the assembly elections.
Oil marketing companies incur under-recoveries
April 23, 2026
Joint secretary Sujata Sharma said OMCs are incurring under-recoveries of ₹20 per litre on petrol and ₹100 per litre on diesel, with daily fluctuations.
Brent crude hovering over $103 on April 23, 2026
April 23, 2026
Brent crude was hovering over $103 per barrel on April 23, 2026.
Brent crude at $101.91 on April 22, 2026
April 22, 2026
Brent crude surged to $101.91 per barrel, up around 40% from pre-crisis levels of about $72.87.
Excise duty cut on petrol and diesel around March 2026
March 2026
The government slashed excise duty on petrol and diesel by ₹10 per litre each about a month before the report.
Five-paise increase on October 30, 2024
October 30, 2024
A marginal five-paise increase occurred on October 30, 2024 due to marketing cost adjustments.
Auto fuel rates largely static since March 2024
March 2024
Auto fuel rates in India have been largely static since mid-March 2024.