The price of premium or higher-grade petrol on Friday was increased by Rs 2 per litre while the rate of bulk diesel sold to industrial users was hiked by about Rs 22 a litre, reflecting the spike in global oil prices amid conflict in the Middle-East.
However, the prices of normal petrol and diesel remain unchanged.
Premium 95-Octane petrol price in Delhi has been increased from Rs 99.89 per litre to Rs 101.89 per litre, industry sources said.
Alongside, bulk or industrial diesel prices were hiked from Rs 87.67 per litre to Rs 109.59 per litre in Delhi. Commercial diesel is used by establishments such as telecom towers to meet power requirements.
In Mumbai, industrial diesel prices have been increased from Rs 90.39 per litre to Rs 113.11 per litre (up Rs 22.72 per litre); in Kolkata from Rs 92.30 per litre to Rs 114.27 per litre (up Rs 21.97 per litre); and in Chennai from Rs 92.54 per litre to Rs 113.38 per litre (up Rs 20.84 per litre).
International oil prices touched USD 119 per barrel on Thursday on the intensifying Iran war, before pulling back to around USD 108 a barrel.
A litre of normal petrol in Delhi continues to cost Rs 94.77, while the same grade of diesel costs Rs 87.67 a litre.
Normal petrol typically has an octane rating of 91-92 and is suitable for standard engines, offering adequate performance for everyday driving. Premium petrol, on the other hand, has a higher octane rating of 95-98, making it ideal for high-performance or high-compression engines.
At a media briefing, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said there is no increase in prices of normal petrol and diesel.
"Some increase is reported in the premium category, which hardly makes up for 2-4 per cent of the entire petrol (sold in the country)," she said. "There is no increase in price for the common man."
Pricing decisions, she said, are taken by oil companies independently as petrol and diesel pricing was deregulated in 2010 and 2014, respectively.
"It (pricing) is decided by oil marketing companies. Government does not regulate petrol and diesel prices," she added.
The government is closely monitoring global oil markets, but there is no immediate plan to raise retail fuel prices. Oil marketing companies are expected to absorb the current cost pressure for the time being.
"Our priority is to make energy available to all consumers, which we have been doing all through the crisis. Till now we have not increased the prices," she added.
Meanwhile, Indian Oil Corporation in a post on social network X, said, "As global crude prices surge, stability at home matters more than ever."
IndianOil has ensured no increase in regular automotive fuel prices in India, even amid rising international costs. A limited revision applies only to premium petrol XP-95, with minimal impact on overall consumption. Through evolving global conditions, the focus remains clear: consistent supply, responsible pricing, and service you can rely on.
Retail petrol and diesel prices have been frozen since April 2022, with fuel retailers like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) absorbing losses when crude prices are high and making profits when rates are low.
This meant that when global fuel prices went up in response to elevated crude prices, prices were stable in India. And when softening of crude prices pushed down fuel rates globally, rates in India remained unchanged.
The government wants to continue to shield consumers, and the same policy will continue unless there is a huge spike in crude prices.
India imports 88 per cent of its crude oil needs and roughly half of its natural gas requirement. These mostly come via the Strait of Hormuz.
Following the US and Israeli attacks on Iranian government, military and nuclear facilities, Iran warned shipping away from the strait, and insurers withdrew coverage, effectively halting tanker movements.
Prices had risen to USD 119 per barrel in June 2022 in the aftermath of Russia's invasion of Ukraine. That year, oil companies had nominal profits, but in FY24, they posted record Rs 81,000 crore profit, helping make up for past dent in margins.
This year, the three companies have posted Rs 23,743 crore profit in the December quarter alone.
