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India Raises Pump Prices Above ₹100 as OMC Losses Persist

Government-led gradual price increases aim to recover under‑recoveries that built up while retail rates were frozen.

Overview

  • State-run oil marketing companies implemented four retail hikes in mid‑to‑late May, lifting petrol above ₹100 per litre in several major cities.
  • The Ministry of Petroleum said PSU OMCs continue to absorb about ₹550 crore in daily losses even after the recent rounds of increases.
  • The Centre reported sharp retail demand spikes across districts and on May 29 urged states to form enforcement squads to stop bulk and industrial buyers from using retail pumps.
  • Opposition leaders and state politicians are pressuring governments to cut VAT and surcharges while industry executives warn higher fuel will raise freight costs and could dent consumer and auto demand.
  • In a contrasting move, Pakistan announced a Rs22 per litre cut in petrol and diesel on May 29 after global crude eased on ceasefire and negotiation signals.