Petrol and diesel prices in India may rise again as oil marketing companies continue to suffer heavy losses despite recent hikes. Analysts say losses remain at ₹5.5 per litre on petrol and ₹4.5 per litre on diesel. Daily under‑recoveries are estimated at ₹610 crore, showing the pressure on companies even after a ₹7.5 increase since mid‑May.
Experts believe another ₹5 hike may be required to bring prices closer to break‑even levels. If global crude prices stay high, the cumulative increase could reach ₹10 per litre. This situation is expected to worsen inflation, raising transport and food costs across the country.
Road transport carries most freight in India, and fuel accounts for nearly half of operating costs. Rising fuel prices will directly affect the movement of goods, pushing up prices of dairy, fruits, pulses, spices, tea, coffee, meat and fish. Household budgets are likely to feel the strain as essential items become more expensive.
Losses are not limited to petrol and diesel. LPG cylinders show under‑recoveries of about ₹680 each, while aviation turbine fuel adds another ₹93 crore in daily losses. Analysts warn that inflation could rise by nearly half a percentage point if hikes continue.
India’s economy faces a difficult balance between consumer relief and company survival.