Petrol, diesel, and domestic LPG prices remained unchanged in Delhi, Mumbai, and Kolkata on May 22, 2024 [1, 2].

This price stability comes as Oil Marketing Companies (OMCs) face significant financial pressure and global markets react to instability in the Middle East. The gap between international crude costs and domestic retail prices continues to strain the balance sheets of state-run distributors.

While domestic LPG rates stayed the same across major cities [3], commercial LPG cylinder rates rose sharply [2]. In New Delhi, the petrol price was recorded at Rs 97.77 per litre [4].

Some reports indicated a price hike of Rs 3 per litre for both petrol and diesel [5]. However, other data suggests that rates remained steady across the major metropolitan hubs [1, 2]. This discrepancy highlights the volatile nature of fuel pricing during periods of geopolitical stress.

Market analysts said the current volatility is due to rising demand and fears of panic-buying [1, 5]. These concerns are linked to heightened tensions in the Middle East, specifically focusing on the Strait of Hormuz and the ongoing crisis involving Iran [5].

Despite the steady retail rates for consumers, the financial burden on providers is mounting. Oil Marketing Companies are reportedly losing Rs 1,000 crore per day [6]. This loss stems from the inability to fully pass on the increased cost of crude oil to the end consumer—a situation that often precedes larger price adjustments.

Fuel rates in other major cities, including Bengaluru, Noida, Chennai, and Gurugram, followed similar patterns of stability for domestic use [2].

“Oil Marketing Companies are reportedly losing Rs 1,000 crore per day.”

The disconnect between stable retail prices and the massive daily losses of OMCs suggests a government-led effort to curb inflation despite geopolitical volatility. By absorbing the costs of Middle East tensions and the Iran crisis, the state prevents immediate price shocks to consumers, but the unsustainable daily losses of Rs 1,000 crore indicate that a price correction may be inevitable if global crude volatility persists.