New Delhi: The Centre has ruled out any immediate reduction in petrol and diesel prices, saying retail fuel rates are determined by market conditions and are set by public sector oil marketing companies.
The clarification came in the Rajya Sabha amid questions over whether falling international crude oil prices could lead to cheaper fuel for consumers. The government said it does not directly determine retail petrol and diesel prices and has made no fresh announcement on reducing them.
The Petroleum Ministry also detailed the impact of the sharp rise in crude prices following the US Israel conflict with Iran. India’s crude oil basket, which was around $69 per barrel in February 2026, surged to $136.68 per barrel in March before fluctuating amid geopolitical uncertainty and changing market conditions.
Public sector oil companies absorbed a significant portion of the increase rather than passing the entire burden on to consumers. The pressure was reflected in their financial results for the first quarter of 2026-27.
Indian Oil Corporation recorded a loss of Rs 2,662 crore, while Bharat Petroleum Corporation reported a loss of Rs 3,962 crore. Hindustan Petroleum Corporation posted an even larger loss of Rs 11,526 crore during the quarter.
The Centre also highlighted its decision to cut excise duty on petrol and diesel by Rs 10 per litre in March. The reduction was intended to cushion consumers against the impact of elevated international crude prices, although it also reduced government tax revenue.
Fuel prices continue to vary across cities because of differences in state taxes and local levies. In Delhi, petrol is priced at Rs 102.12 per litre and diesel at Rs 95.20. Mumbai has petrol at Rs 111.21 and diesel at Rs 97.83, while Chennai and Bengaluru also have comparatively high retail rates.
Petrol and diesel prices had increased several times after February 28, including a Rs 3 per litre hike in April and further increases in May. In Delhi, the cumulative rise following the May hikes reached Rs 4.74 per litre for petrol and Rs 4.82 per litre for diesel.
For now, consumers will have to wait for any potential relief at the pump, as the government maintains that fuel prices remain market driven.
