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Modi Urges Fuel Saving as India Braces for Possible Price Hike

Mounting losses have prompted signals from ministers and industry that pump prices could rise within days.

Overview

  • Modi, who spoke Sunday in Hyderabad, asked people to revive work from home, use public transport and postpone wedding gold buys for a year to save foreign exchange.
  • Government and industry sources said petrol and diesel prices may be raised before May 15 by about ₹4–₹5 a litre, with a possible ₹40–₹50 increase for LPG cylinders, pending approval.
  • State-run fuel retailers have racked up over ₹1 lakh crore in under-recoveries in 10 weeks, with daily losses near ₹1,600–₹1,700 crore, and the petroleum minister warned losses could touch ₹1,000 crore a day.
  • India kept pump prices steady even as global crude jumped from roughly $70 to about $120–$126 a barrel by ramping LPG output, running refineries at full tilt, cutting fuel taxes and diversifying crude supplies.
  • Officials said supplies remain uninterrupted, but any hike would raise household and transport costs and prolonged strain could delay oil firms’ investments in refining, pipelines and cleaner fuels.