New Delhi, 23 : State-owned Bharat Petroleum Corporation Ltd (BPCL) has indicated that it may consider increasing retail fuel prices if global crude oil prices continue to remain above $90 per barrel, citing mounting pressure on the company’s financials
The statement comes as international crude oil prices have surged to around $95 per barrel, up sharply from nearly $72 per barrel at the beginning of the month. The spike has been driven by renewed geopolitical tensions following the collapse of the US-Iran ceasefire and supply concerns arising from disruptions in the Strait of Hormuz and the Red Sea, key global oil transit routes.
Speaking to Business Standard, BPCL Director (Finance) Vetsa Ramakrishna Gupta said the company would closely monitor whether crude prices stabilize or decline before taking a final decision on revising fuel prices.
“Fuel prices require revision based on current crude prices. For now, we will wait to see whether crude stabilises at this level or comes down. The current surge appears temporary, but if prices remain elevated or rise further, there will definitely be an upward revision,” Gupta said.
He noted that crude oil prices above $80 per barrel begin to put significant pressure on BPCL’s balance sheet, making sustained high prices financially challenging for the company.
India imports more than 85% of its crude oil requirements, making domestic fuel prices highly sensitive to global market movements. Continued geopolitical uncertainty and supply disruptions have increased volatility in international oil markets, raising concerns over inflation and transportation costs.
Industry analysts said any sustained rise in crude prices could eventually translate into higher petrol and diesel prices if state-run oil marketing companies are unable to absorb the additional costs. Market participants will closely watch global crude price trends in the coming weeks before any decision on retail fuel price revisions is taken.
