Premium Petrol Becomes 2 Dearer; Industrial Diesel Hikes by 22

Oil marketing companies have hiked the price of premium petrol by ₹2 per liter. Rates for wholesale diesel intended for industrial use have also been raised by approximately ₹22 per liter. Oil marketing companies implemented this price hike following a surge in global oil prices, triggered by the ongoing conflict in the Middle East.

However, no changes have been made to the prices of standard petrol and diesel. In Delhi, the price of premium 95-octane petrol has risen from ₹99.89 to ₹101.89 per liter. Similarly, wholesale industrial diesel prices in Delhi have increased from ₹87.67 to ₹109.59 per liter. International oil prices had touched $119 per barrel on Thursday, March 19, before subsequently easing back to around $108 per barrel.

In a general notification, Indian Oil stated that a significant surge in global crude oil prices has been recorded over the past 20 days. Crude oil prices have risen from $71 per barrel to $156 per barrel. Despite this global surge, there has been no increase in automotive fuel prices within India.

The company clarified that Indian Oil has increased the price by ₹2 per liter only for its premium petrol variant, XP-95. This premium petrol accounts for approximately five percent of total petrol sales. The company reiterated its commitment to ensuring the uninterrupted availability of fuel across the country.

Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, stated that there has been no increase in the prices of standard petrol and diesel. She noted that the premium category constitutes only two to four percent of total petrol sales. The government does not wish to impose the burden of any price hike on the common man. Oil companies make pricing decisions independently; the government does not regulate petrol and diesel prices.

The pricing of petrol and diesel was deregulated in 2010 and 2014, respectively. Since then, oil marketing companies have been responsible for setting prices. The government is closely monitoring global oil markets. Currently, there are no immediate plans to increase retail fuel prices. Oil marketing companies are expected to absorb the prevailing cost pressures.

Impact on Companies’ Profits and Imports?

Retail petrol and diesel prices have remained stable since April 2022. Companies such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited have incurred losses. They absorbed losses when crude oil prices were high and earned profits when prices were low. In the financial year 2024, these companies recorded a record profit of ₹81,000 crore. India imports 88 percent of its crude oil requirements.

Which Brands Have Been Affected?

Information received through dealers indicates that this recent price hike has had a direct impact on the branded fuels offered by major oil companies. These include Hindustan Petroleum Corporation Limited’s (HPCL) ‘Power Petrol’ and Indian Oil Corporation Limited’s (IOCL) ‘XP95,’ the retail prices of which have been revised with immediate effect. It is noteworthy that premium petrol is primarily used in vehicles to achieve superior engine performance and better mileage.

The Geopolitical Crisis in West Asia & Its Impact on Crude Oil Prices?

This increase in premium petrol prices in India is a direct consequence of the escalating war like situation emerging on the global stage. In the international market, oil prices are surging rapidly due to the ongoing conflict and tensions between the US-Israel axis and Iran. The global fuel market is currently experiencing extreme volatility, the pressure of which is now becoming evident in the domestic market as well.

Further more, several developments regarding the conflict involving Iran are also unfolding on the global stage. On one hand, British Prime Minister Starmer has announced a £53 million aid package while ruling out a conflict with Iran; on the other hand, Germany has also rejected Donald Trump’s pressure to take action against Iran. All these international developments have destabilized crude oil prices.

Price Hike : The price of premium petrol has been increased by ₹2 to ₹2.30 per liter.

Affected Brands : The prices of HPCL’s ‘Power Petrol’ and IOCL’s ‘XP95’ have been raised.

Relief for Consumers : There has been no change in the price of regular petrol, which remains stable at previous levels.

Effective Date : The new rates came into effect on March 20, 2026.

Primary Cause : Ongoing geopolitical tensions in the Middle East specifically the conflict situation involving the US, Israel, and Iran which is driving up global oil prices.

In summary, the ongoing geopolitical turmoil in the Middle East involving the US, Israel, and Iran has exerted increased pressure on global oil supply chains and prices. Consequently, Oil Marketing Companies (OMCs) in India have been compelled to raise the prices of premium petrol.