Archive · 10 Sep 2026
Crude Spike Unlikely to Trigger Immediate Indian Fuel Hike
Oil became much more expensive because fighting disrupted supplies in West Asia.
Brent crude briefly rose above $100 for one barrel.
India imports much of the crude oil it uses, so higher global prices make imports costlier.
However, petrol and diesel prices in Delhi have not changed since May 25.
Experts said prices may rise only if crude stays well above about $110 a barrel.
Oil companies are currently losing money on the fuel they sell at existing prices.
Their finances are under pressure because their costs have increased.
India has already spent much more on crude imports than during the same period last year.
Brent crude briefly crossed $100 a barrel, while the Indian crude basket reached $108.91 on September 8.
Officials indicated another petrol and diesel price revision may depend on crude prices remaining elevated.
Petrol and diesel prices in Delhi have stayed at ₹102.12 and ₹95.20 per litre since May 25.
Indian fuel marketing margins have turned sharply negative, increasing financial pressure on state-run oil companies.
India’s crude import bill reached $63.37 billion in the first four months of FY27, up 56% year-on-year.
- Who
- Indian state-run oil marketing companies, Indian consumers, energy analysts and the International Energy Agency are involved.
- What
- Global crude prices rose sharply, but an immediate increase in Indian petrol and diesel prices appears unlikely.
- When
- Brent crossed $100 a barrel on Wednesday; the Indian crude basket was reported at $108.91 on September 8. The last retail price revision occurred on May 25.
- Where
- The price impact concerns India and global oil supplies from West Asia, including routes through the Red Sea and the Strait of Hormuz.
- Why
- Conflict involving Iran, the United States and Iran-backed Houthis has disrupted or threatened oil supplies and shipping routes, raising crude prices.
- Brent price
- Brent futures reached $100.19 a barrel and were later trading at $99.93.
- Indian crude basket
- The basket reached $108.91 a barrel on September 8 and averaged $102.11 in September through the date reported.
- Delhi petrol price
- ₹102.12 per litre since May 25.
- Delhi diesel price
- ₹95.20 per litre since May 25.
- Crude import bill
- India spent $63.37 billion in the first four months of FY27, compared with $40.55 billion a year earlier.
- Fuel marketing margins
- September-to-date margins were negative ₹5 per litre for petrol and negative ₹23 per litre for diesel, according to Icra.
- Oil company finances
- The combined standalone debt of Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation rose to ₹2.3 lakh crore in Q1FY27.