Fuel prices up 3rd time in 10 days, PSUs losing Rs 13/litre on petrol, Rs 38 on diesel - The Times of India

India's state-owned Oil Marketing Companies have once again hiked retail fuel prices, marking the third increase in just ten days. This latest surge has pushed petrol past the ₹115-mark in some states, while leaving OMCs facing staggering "under-recoveries" of approximately ₹13 per litre on petrol and a crippling ₹38 per litre on diesel. The rapid price escalation underscores a severe squeeze on both consumer budgets and the financial health of key Public Sector Undertakings. The current predicament is a direct fallout of volatile global energy markets, particularly robust Brent Crude prices, exacerbated by OPEC+ continued production discipline that has kept supply tight through Q2 2026. For months, the Indian government has navigated a tricky balance, often leaning on OMCs like Indian Oil, HPCL, and BPCL to absorb input cost increases to cushion consumers. However, these escalating under-recoveries are now unsustainable, forcing the government's hand at a time when headline inflation, driven significantly by transport costs, is already a critical concern for the Reserve Bank of India's Monetary Policy Committee. As OMCs' balance sheets take a hit, pressure is mounting on the Ministry of Petroleum and Natural Gas to either consider significant excise duty cuts, which would strain central government finances, or risk further price hikes that could derail economic recovery and trigger broader inflationary spirals. Observers are watching closely for any fiscal interventions or strategic petroleum reserve releases, with the next few weeks critical for assessing how policymakers will navigate this economic tightrope and mitigate the cascading impact on millions of consumers.