Petrol and diesel prices in major Indian cities remained stable on January 10, 2026, despite international crude oil prices dipping to around $58-59 per barrel. In Delhi, petrol costs ₹94.77 per liter and diesel ₹87.67 per liter, while Mumbai sees petrol at ₹103.41 and diesel at ₹91.46 per liter . This freeze, ongoing since May 2022, allows oil marketing companies (OMCs) like IOCL, BPCL, and HPCL to post robust gross marketing margins (GMM) of ₹10.6 per liter on auto fuels, triple the historical norm of ₹3.5 per liter.
OMC margins face intense scrutiny as analysts predict government intervention via excise duty hikes of ₹3-4 per liter before the February 2026 Budget . JM Financial notes every ₹1 per liter GMM change impacts OMC EBITDA by 12-17%, with current integrated margins at ₹19.2 per liter versus ₹12.2 historically. Low crude sustains these gains short-term, but fiscal pressures from 8% nominal GDP growth may prompt revenue capture, potentially pressuring OMC valuations .
In stark contrast, Nepal's NOC cut petrol by ₹4 to around ₹159-170 per liter and diesel/kerosene by ₹5 to ₹137-158 per liter effective early January 2026, reflecting quicker pass-through of global trends . India adjusted other fuels on January 1: ATF fell 7.3% to ₹92,323 per kl, commercial LPG rose ₹111 per cylinder, while CNG/PNG dropped ₹1-3 per unit in cities like Delhi . Petrol/diesel stability shields consumers from crude volatility but fuels debate on OMC windfalls amid stable rupee and refining profits.
