Hindustan Petroleum Corporation has increased prices of its premium petrol variant by a little over ₹2 per litre, sources told CNBC-TV18, even as regular petrol prices remain unchanged.

In the national capital, the price of premium petrol has been revised from ₹99.87 to ₹101.89 per litre in Delhi. However, there has been no change in the price of normal petrol, which continues to be sold at existing rates.

Sources added that these are Delhi-specific prices, and rates in other cities and states will be higher or lower depending on local taxes and prevailing fuel prices.

The move comes amid elevated crude oil prices and rising input costs linked to ongoing tensions in West Asia. The hike is expected to impact consumers using high-octane or premium petrol variants, which are typically preferred for better engine performance and efficiency.

Prices of premium petrol variants — BPCL’s Speed, HPCL’s Power and IOCL’s XP95 — have been hiked by ₹2.09–₹2.35 per litre, according to an ANI post on X.

Sujata Sharma, joint secretary in the Ministry of Petroleum and Natural Gas (MoPNG), addressing an inter-ministerial briefing on recent developments in West Asia on Friday said that there has been no increase in prices of regular petrol, clarifying that the recent hike is limited to premium variants, which account for just 3–4% of total demand.

She added that fuel prices are deregulated and determined by oil marketing companies (OMCs) based on market conditions.

India’s crude import costs have surged sharply in recent days, adding to the pressure on downstream fuel retailers. The average price of the Indian crude basket rose to $146.09 per barrel on March 17, up over 111% from February levels, amid supply concerns linked to disruptions around the Strait of Hormuz.

According to analysts, current crude levels are well above sustainable thresholds for OMCs. A report by Elara Capital noted that crude above $110 per barrel could significantly compress margins, with petrol and diesel margins potentially falling by over ₹6 per litre, while LPG under-recoveries could widen materially.

Seperately, Indian Oil Corporation has also increased prices of industrial diesel, with rates revised sharply from ₹87.67 to ₹109.59 per litre, reflecting a steep jump amid rising input costs.

Despite the cost pressures, retail prices of regular fuels have largely remained unchanged so far, with OMCs absorbing the impact. Market reaction in OMC stocks remained mixed, with Indian Oil Corporation up 2.24%, Bharat Petroleum Corporation gaining 1%, and Hindustan Petroleum Corporation rising 4%.

LPG losses keep pressure on petrol, diesel pricing

Despite the recent ₹60 per cylinder hike, LPG under-recoveries for oil marketing companies (OMCs) remain elevated, especially at higher Saudi CP levels. At $600–650 per tonne, losses still stand at ₹115–₹180 per cylinder, indicating that cost pressures persist.

According to Equirus Capital, this continued strain on LPG economics is a key reason why retail petrol and diesel prices may need to be revisited. With marketing margins already negative — estimated at ₹5–8/litre for petrol and ₹24–27/litre for diesel — OMCs are absorbing significant losses across fuels.

While the LPG price hike offers partial relief, the broader under-recovery burden, coupled with elevated crude prices, strengthens the case for a calibrated increase in petrol and diesel prices in the coming months.