Petrol, Diesel Prices May Surge Up to ₹35/L After Elections: Report Warns

New Delhi: Indians are bracing for a significant rise in the petrol and diesel prices due to rising crude oil prices. If experts are to be believed then petrol may become expensive by ₹18 and diesel by ₹35 per liter.

A report by foreign brokerage firm Macquarie has said that despite crude oil being expensive, petrol and diesel prices in the country are stable. This is causing losses to companies. In such a situation, companies may increase prices after the elections in 5 states including West Bengal are over.

Crude oil price increased by 27 dollars in 46 days

Date Crude oil price

27 February 73 dollars per barrel

19 March 120 dollars per barrel

14 April 100 dollars per barrel

Company is suffering a loss of ₹1,600 crore every day

Due to crude oil becoming expensive, companies are suffering a loss of Rs.18  on petrol and Rs.35 on diesel per liter. At the peak last month, these three companies were suffering a loss of about 2,400 crore rupees per day. After a Rs 10 cut in excise duty, this loss has come down to Rs 1,600 crore. For every $10 increase, the loss increases by about Rs 6 per litre.

India imports 88% of its crude oil

India imports about 88% of its crude oil requirements. Of this, 45% comes from the Middle East and 35% from Russia. Rising crude oil prices are a threat not only to oil companies but also to the country’s current account deficit (CAD). It is estimated that this deficit could increase to $20 billion in the first quarter of 2026.

Pressure on government earnings

The contribution of excise duty on oil to government revenue has been steadily declining. In the financial year 2017, it was 22%, which has now come down to just 8%. Even if the government removes the entire excise duty, the losses of oil companies will not be completely eliminated at current prices.

Many countries including America increased petrol and diesel prices

Average petrol prices in America have risen above $4 per gallon for the first time since August 2022. While many neighboring countries including Pakistan, Nepal and Sri Lanka have also increased petrol and diesel prices.