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Informist, Tuesday, May 19, 2026

 

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--IOC official: Gradually raising fuel prices to limit rise in inflation 
--IOC official: Don't have total quantum of fuel price increase in mind 
--IOC official: Trying to protect consumers as much as we can 
--IOC official: Raised fuel prices due to global conditions 
--IOC official: Don't foresee reduction in fuel demand due to price hike 
--IOC official: Expect fuel demand to be robust through summer months 
 

 

By Aaryan Khanna

 

NEW DELHI – Indian Oil Corp. Ltd. is increasing fuel prices gradually to limit the impact on consumers and keep inflation in check, a senior official from the state-owned oil marketing company said. As of now, the company does not have a total quantum of fuel price increases in mind, even as its costs have risen sharply due to the impact of the war in West Asia.

 

The country's largest fuel marketer raised petrol and diesel prices by INR 3 per litre on Friday and around 90 paise per litre on Tuesday, the first such increases in over four years. Barclays has estimated that CPI inflation will go up by 15 basis points from June and by 8 bps in May due to the impact of the initial increase of INR 3 per litre. In April, CPI inflation was 3.48%, below the Reserve Bank of India's target of 4%, while wholesale price inflation shot up to a 42-month high of 8.30%.

 

The official said that he had no comparison in mind to the price increases in 2022, when Indian Oil raised petrol and diesel prices by INR 10 per litre over 15 days, a month after oil prices shot up due to Russia's invasion of Ukraine. Since the US and Israel attacked Iran in late February, futures of the international benchmark Brent crude have shot up nearly 60% and hover around $110 per barrel. This has led to daily losses of around INR 10 billion for state-owned oil marketing companies, which had not raised retail fuel prices until Friday, government officials have said. 

 

"We don't want to do it all in one go as that will have an impact on inflation," the official told Informist. "Our pricing is based on cycles and we are trying to protect consumers as much as we can rather than focus on quarterly profit. The total price increase will be a decision taken at the top but this increase was necessary looking at the global situation."

 

The official was of the view that the increase in fuel prices would not lead to reduction in demand for petrol and diesel immediately, especially in the summer months. Early signs from Friday's price increase also did not seem to suggest a change in consumption and Indian Oil will continue to monitor the impact, the official said. 

 

"In the summer months, there is usually quite good demand for fuel and that should not change based on prices increasing," the official said. "It (demand for motor fuel) slows down in the winter months slightly." 

 

The state-owned oil marketing company detailed its March quarter earnings late on Monday. Its net profit for the quarter was INR 113.78 billion, up nearly 57% on year and ahead of analysts' estimate of INR 72.48 billion. At 1112 IST, shares of Indian Oil were up 3.1% at INR 135.93 on the National Stock Exchange.  End

 

US$1 = INR 96.35

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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