Industry Odisha Bureau, Jul 3: Soon after India’s largest private refiner-cum-fuel retailer Nayara reportedly slashed petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre across its 7,000 fuel stations, public pressure is reportedly mounting on the government-owned oil marketing companies (OMCs) to reduce petrol and diesel prices at their retail outlets across India.
Reportedly, the OMCs “raised petrol and diesel prices for the first time on May 15 this year, and cumulatively raised by around ₹7.5 per litre subsequently over four separate dates owing to the West Asia crisis that had triggered severe disruptions in the supply chain along with a steep surge in the global crude oil prices.”
Media reports also claimed, “Despite a fall in the prices of global crude oil in the international markets, the prices of auto fuels provided by the OMCs and sold at their respective retail outlets across the country are still costly even though the OMCs have already cut prices of jet fuel and commercial cooking gas.”
Media reports quoting government officials also stated that, “The loss incurred by the OMCs was quite heavy during the West Asia crisis that broke out on February 28 this year and lasted till the US-Iran peace deal was inked recently. The OMCs still sell petrol and diesel at prices much below the international rates. They would look to make good of the losses incurred and wait for the crude prices to be stable. Amid high under-recoveries, OMCs are estimated to incur losses of around ₹1 trillion in the first quarter of FY27.”
While addressing a press conference on June 20, Union Petroleum and Natural Gas Minister Hardeep Singh Puri reportedly argued that, “petrol and diesel prices in the country have not effectively increased despite volatility in global crude oil markets.”
He reportedly said, “If we look at the situation in real terms, there has been no increase in petrol and diesel prices in the country,” arguing, “the Government of India reduced central excise duty in November 2021, May 2022 and again recently in April 2026.”
