Fuel prices hiked by Rs 3 amid West Asia crisis; Hyderabad petrol at Rs 110.78
Hyderabad: Fuel prices hiked by Rs 3 per litre across all variants on Friday as oil marketing companies faced mounting pressure from the ongoing West Asia crisis.
The revised fuel prices came into effect immediately across the country. Oil companies said mounting under-recoveries and rising crude oil prices forced the latest increase.
In Delhi, petrol prices increased by Rs 3.14 per litre to Rs 97.77. Similarly, diesel prices rose by Rs 3.11 per litre.
In Hyderabad, petrol prices reached Rs 110.78 per litre. Meanwhile, diesel prices increased to Rs 98.90 per litre.
Oil companies also increased compressed natural gas prices amid the Middle East crisis. The price of CNG increased by Rs 2 per kilogram from Friday.
Consequently, the revised CNG price in Delhi reached Rs 79.09 per kilogram.
Fuel prices hiked as OMCs face mounting losses
Oil marketing companies said they were facing severe financial pressure. They continued selling fuel at unchanged retail prices despite rising crude oil costs.
According to Sujata Sharma, Joint Secretary in the Union Petroleum Ministry, the combined under-recovery on petrol, diesel and LPG reached nearly Rs 30,000 crore every month.
She said oil companies were purchasing crude oil at higher rates. However, they were not increasing retail fuel prices proportionately.
Sharma said the companies avoided sharp retail hikes to protect consumers. She also said the Centre had reduced excise duties on petrol and diesel earlier.
As a result, the government sacrificed nearly Rs 14,000 crore in monthly revenue. However, under-recoveries continued to widen.
Petroleum Minister Hardeep Singh Puri warned that prolonged high crude oil prices could wipe out FY26 profits of state-run oil marketing companies.
Speaking at the CII Annual Business Summit 2026, Puri said the Middle East conflict sharply increased financial pressure on fuel retailers.
He stated that oil companies were currently losing nearly Rs 1,000 crore every day. He estimated combined quarterly losses could touch nearly Rs 1 lakh crore if current trends continued.
Global crude oil prices crossed the $100 per barrel mark because of fears over prolonged supply disruptions linked to the US-Iran conflict.
Puri said a single quarter of losses at prevailing crude price levels could erase the entire profit after tax of state-run fuel retailers for FY26.
Industry estimates indicated that Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum could report combined losses of nearly Rs 1.2 lakh crore in the first quarter of FY27 alone.