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Petrol and diesel prices may rise sharply as crude oil crosses $100 a barrel. Experts warn petrol could reach ₹120–₹125, while oil companies continue facing huge losses despite the recent hike.

New rates for Petrol, Diesel and CNG

The price hike is hitting wallets from Delhi to Mumbai. In Delhi, petrol now costs ₹97.77 and diesel is at ₹90.67 per litre. Mumbai has seen petrol cross the ₹106 mark. CNG prices have also gone up by ₹2 per kg.

Why did petrol and diesel prices increase?

The main reason is the price of crude oil in the international market. A while ago, crude oil was around $70 per barrel, but now it has shot past $100. When crude oil gets expensive, it directly pressures importing economies like India. Oil companies then either take a loss or adjust the prices.

What is the 'break-even' math for oil companies?

Break-even simply means no profit, no loss. Public sector oil companies like IOCL, BPCL, and HPCL were selling fuel at a loss. Reports suggest these companies were losing about ₹30,000 crore every month because they were selling fuel at old rates while crude oil had become expensive. Experts don't see the current ₹3 hike as a complete fix.

How much more expensive can petrol and diesel get?

According to experts, this ₹3 hike is just a drop in the ocean for oil companies. They will reach a 'no profit-no loss' (Break-Even) point only after petrol prices go up by another ₹28 and diesel by ₹32. If the situation doesn't improve, petrol rates could soon be between ₹120 and ₹125.

Why were petrol and diesel prices stable?

Fuel prices had been stable since March 2024. In fact, the public was given a ₹2 relief just before elections in 5 states. Experts say that due to 'political sensitivity,' companies were absorbing losses instead of raising prices. But now, the international pressure has become too much to ignore.

PM Modi's 'be careful' hint

Recently, during a program in Telangana, PM Modi made a very important point. He said that looking at the current situation, we should use petrol, diesel, and gas with 'great restraint'. His hint was perhaps pointing towards today's price rise. The less we depend on foreign oil, the more secure our country's economy and your wallet will be.