New Delhi: On the morning of May 1st, Indian petroleum companies delivered a major shock to the nation. A massive hike was recorded in the prices of commercial gas cylinders, casting a pall of disappointment over the public. However, the prices of domestic gas cylinders remain unchanged. On the other hand, rising crude oil prices in the global market are fueling growing anxiety among petrol and diesel consumers in India. Ordinary citizens fear that India, too, might witness a sudden surge in petrol and diesel prices. Notably, petrol and diesel prices in India have remained stable for quite some time now.
key highlights
The Global Crisis — Current Situation
| Parameter | Details |
|---|---|
| 🛢️ Brent Crude — Weekly High | $126/barrel (4-year high) |
| 🛢️ Brent Crude — Current Level | $110+ /barrel |
| 🛢️ Last Year’s Average | ~$70/barrel |
| 🛢️ This Month’s Average | ~$114/barrel |
| 📈 Price Rise (Year-on-Year) | ▲ ~63% surge |
| 🔥 Root Cause | US-Israel vs Iran conflict |
| 🚢 Key Choke Point | Strait of Hormuz — oil tanker movement disrupted |
📊 Crude Oil Price Journey
| Period | Price |
|---|---|
| Last year’s average | ~$70/barrel |
| This month’s average | ~$114/barrel |
| Weekly peak (this week) | $126/barrel |
| Current level | $110+/barrel |
| Change | ▲ ~63% rise year-on-year |
⛽ India’s Petrol & Diesel — The Loss Crisis
| Fuel | Retail Price (Stable) | Actual Cost | Loss Per Litre |
|---|---|---|---|
| Petrol | ₹94–107 (city-wise) | Higher | ~₹20/litre |
| Diesel | ₹82–95 (city-wise) | Higher | ~₹100/litre |
Could Petrol and Diesel Prices Rise?
Following the hike in commercial cylinder prices, a sense of uncertainty regarding petrol and diesel rates is brewing in India. According to the news agency PTI, government sources stated on Thursday that, given the evolving circumstances, a rise in petrol and diesel prices in India cannot be ruled out.
Globally, crude oil prices surged this week to reach a four-year high of $126 per barrel. While there has been a slight dip since then, prices still remain above the $110 per barrel mark. The situation remains precarious due to the potential impact on the movement of oil tankers through the Strait of Hormuz and the ongoing tensions between Iran and the United States. If petrol and diesel prices do rise in India, it is bound to dash the hopes of the Indian public.
US-Iran Tensions Persist
Despite numerous efforts, tensions between the US-Israel bloc and Iran show no signs of abating. This conflict is impacting the global crude oil market, sending crude oil prices skyrocketing. Supply disruptions through the Strait of Hormuz have been a key factor driving up crude oil prices.
Last week, a senior official from the Ministry of Petroleum stated that, due to retail prices remaining stable for nearly four years, state-run oil companies are currently incurring losses of approximately ₹20 per litre on petrol and ₹100 per litre on diesel. At that time, no plans to raise prices were announced. Last year, the average price of crude oil stood at approximately $70 per barrel. This month, it has risen to $114 per barrel.
