Retail prices of petrol, diesel and domestic LPG may be revised upward shortly, as policymakers assess the impact of soaring international crude oil rates triggered by geopolitical unrest in West Asia, according to senior officials familiar with the matter.

Petrol and diesel could see an increase of approximately ₹4 to ₹5 per litre, while household LPG cylinders may become costlier by ₹40 to ₹50. If implemented, this would mark the first upward revision in auto fuel prices in nearly four years, after rates were largely kept unchanged since 2022.

Oil marketing companies have been under mounting financial strain due to elevated crude prices in the global market. With pump prices frozen for an extended period, companies have reportedly been bearing significant under-recoveries.

Earlier, the government had indicated that fuel prices would not be revised immediately following the completion of recent assembly elections. However, the sustained rise in benchmark crude oil rates — driven by fears of supply disruptions, shipping vulnerabilities and prolonged instability in West Asia — has intensified pressure on both public finances and energy firms.

Higher import costs are also narrowing the government’s fiscal flexibility, limiting its ability to offset price shocks through subsidies or tax reductions.

Officials said the situation is under close watch, and a final decision on any potential price revision is expected within the next five to seven days. Deliberations are ongoing regarding the timing and quantum of any increase, with authorities seeking to balance the financial health of oil companies against the risk of fueling inflation.

Any upward revision in fuel and LPG rates would likely ripple through transportation expenses and household budgets, making it a politically and economically sensitive move amid global volatility.