Diesel can cost Rs 193/litre if oil companies are allowed to pass on the costs

Diesel prices can go up as much as Rs 193 per litre and petrol to Rs 119 in Delhi if oil marketing companies (OMCs) are allowed to pass on the costs. The Ministry of Petroleum and Natural Gas said that OMCs are incurring under-recoveries at retail selling price levels. This comes as Prime Minister Narendra Modi’s decided to “protect the Indian citizens from soaring international prices”. 

Despite the volatility – result of the West Asia crisis – regular petrol and diesel prices have remained unchanged. In Delhi, petrol is being retailed at Rs 94.77 per litre and diesel at Rs 87.67 per litre, while it is Rs 103.54 and Rs 90.03 respectively in Mumbai. Home Minister Amit Shah said India is the only country where supply has been maintained with nearly zero increase in petrol and diesel prices. "I believe there is no other country in the world that has taken the entire burden of the crisis upon itself," he said.

The ministry said that with global petroleum prices spiking by up to 100 per cent in the past one month, public sector OMCs are “incurring under-recoveries of Rs 24.40/litre on petrol and Rs 104.99/litre on diesel at RSP level as on 01.04.2026”. 

Here’s what you would have to actually pay for your petrol and diesel if the government had decided to not bear the brunt and pass on higher prices:

PETROL IN DELHI – Rs 94.77 per litre + Rs 24.40 per litre of under-recovery, would amount to Rs 119 

DIESEL IN DELHI – Rs 87.67 per litre + Rs 104.99 per litre of under-recovery, would amount to Rs 193

The ministry clarified that the Rs 2 revision in prices announced recently is only for premium petrol variants, including XP95, Power95, Speed, whose prices are revised on a fortnightly basis. The sales of these high-octane performance products amount to 2 per cent and 5 per cent of the total volume. 

“Every pump in India continues to offer regular petrol and diesel at unchanged prices, even as prices in countries all over the world have risen by 30-50 per cent,” the ministry said.

Shah too had reiterated the same, recounting that petroleum product prices have increased by about 50 per cent in Vietnam, 17-20 per cent in Pakistan, 20-30 per cent in Europe, 7-13 per cent in the UK, 18 per cent in Australia, 17-34 per cent in the US, 19 per cent in Cambodia, and 40-48 per cent in Nigeria.