Govt weighs ₹4-5/litre petrol, diesel hike; LPG may rise too
Govt weighs ₹4-5/litre petrol, diesel hike; LPG may rise too
The government is weighing a calibrated fuel price revision to curb inflation while monitoring global crude trends and the impact on households.
The government is weighing a long-awaited revision in retail fuel prices, with discussions pointing toward a potential ₹4–5 per litre rise for petrol and diesel. Officials say any move would be calibrated to shield households from headline inflation while keeping energy subsidies in check.
A likely LPG cylinder hike of ₹40–50 could accompany the price revision, marking the first increase in petrol and diesel prices in almost four years. Retail prices have largely remained frozen since 2022 despite volatile crude markets.
The government is watching developments in West Asia as crude markets swing, and is weighing several options to balance fiscal stability with consumer protection. A final decision could come within 5–7 days, depending on global cues and the government's inflation targets.
Industry sources say oil marketing companies have borne growing under-recoveries from selling fuel at subsidized rates, and the proposed move would help ease their financial strain, while sparing consumers from a sharp spike in prices.
Officials stress that even a calibrated increase is not trivial, given its potential ripple effects on transport, logistics, and everyday budgets. The goal is to reflect global movements without fueling a broad rise in consumer inflation.
If approved, households may see gradual adjustments rather than an abrupt jump, with the government aiming to structure timing and pricing to cushion the impact.
