Crude Basket Soars 112%: Petrol, Diesel Price Hike Looms as OMCs Face Pressure
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News18•20-03-2026, 08:12
Crude Basket Soars 112%: Petrol, Diesel Price Hike Looms as OMCs Face Pressure
•India's crude oil import costs surged by 111.7% to $146.09 per barrel, intensifying pressure on state-run fuel retailers.
•Oil Marketing Companies (OMCs) are absorbing the shock, with profitability eroding significantly as crude prices exceed $110 per barrel.
•Analysts predict OMCs may face annual LPG under-recovery increase of Rs 32,800 crore and require retail price hikes or fiscal support.
•Fuel price revisions are unlikely before March 31, but delayed pass-through of higher costs to consumers is expected.
•The oil price spike poses macro risks, including inflation, a weaker rupee, and a potential $50 billion annual increase in India's energy import bill.
