India's petrol pricing benchmark has touched a 50-month high of $133.05 a barrel, squeezing state-run fuel retailers. Rating agency ICRA says oil marketing companies are losing about Rs 8 a litre on petrol and Rs 9 on diesel.

The average daily benchmark for September 1 to 18 was 20 percent above the August average of $110.87. It also topped the recent peak of $129.63 seen in May, when retailers raised fuel prices four times in a month.

ICRA estimates the three oil companies are losing about Rs 530 crore a day on fuel sales. India imports over 88 percent of its crude, so every jump in global prices hits the country's import bill.

Geopolitical tensions in West Asia have driven the surge. India's crude basket rose to $117.4 a barrel on September 21, up from an average of about $66 in 2025-26.

Retail pump prices have stayed flat so far. If global prices keep climbing, experts say a price hike at the pump would become hard to avoid.