IndianOil Draws the Line at XP-95 Amid Surging Global Crude Costs

Indian Oil Corporation (IndianOil) has increased the price of its premium petrol product XP-95 by ₹2 per litre, while keeping standard petrol and diesel prices unchanged, even as international crude oil costs have nearly doubled over the past three weeks.

The state-owned oil company made the announcement on Friday via a public notice, noting that XP-95 accounts for approximately 5 percent of total petrol sales in the country, limiting the revision's impact on the general consumer. Regular petrol and diesel, which form the bulk of automotive fuel consumption across India, remain at their current prices.

The pricing decision comes amid a sharp rise in global crude oil costs, which have climbed from US$71 to US$156 per barrel over the past 20 days — an increase of roughly 120 percent. Fuel prices in several other countries have risen in response to the same international market pressures, with fuel-importing nations across Asia, Europe, and Africa reporting retail price hikes and some governments introducing emergency subsidies.

The timing of the decision is also notable given the electoral calendar. Several state assembly elections are scheduled in April, including in key states, making any broad-based fuel price hike politically sensitive. Successive governments have historically been cautious about raising prices of widely used fuels like regular petrol and diesel in the run-up to elections, as fuel costs directly affect household budgets, transportation, and the broader cost of living.

In its public statement, IndianOil said it remains committed to "ensuring uninterrupted fuel availability across the country." The announcement did not specify how long the current price freeze would be maintained, nor did it detail the financial impact the crude surge is having on its operations.

Fuel prices in India are regulated and do not automatically adjust with international crude market movements. State-owned oil marketing companies — IndianOil, Bharat Petroleum, and Hindustan Petroleum — periodically revise retail prices in consultation with the central government, allowing authorities to absorb short-term cost pressures and shield consumers from sudden spikes. However, this system can place a significant financial burden on the companies themselves during prolonged periods of high crude costs.

India is the world's third-largest consumer of crude oil and imports around 85 percent of its requirements, making it particularly sensitive to global oil price fluctuations. IndianOil, the country's largest oil company by revenue, operates the most extensive fuel retail network in India, and its pricing decisions carry wide public consequence — influencing household fuel bills, freight costs, and agricultural operations. The company has not indicated whether further revisions are expected if crude prices remain elevated or rise further.