Crude Oil Prices Surge Globally, But No Immediate Hike in Petrol and Diesel Prices in India
Despite a sharp rise in global crude oil prices amid Iran-Israel-US tensions, sources say petrol and diesel prices in India are unlikely to increase. The government is closely monitoring fuel supply and pricing.
Prasanth Subramani
Even as global crude oil prices have surged due to escalating tensions between Iran, Israel, and the United States, petrol and diesel prices in India are unlikely to be increased immediately, according to informed sources.
International crude oil prices have reportedly risen by nearly 9%, touching around $80 per barrel. However, central government sources indicated that retail fuel prices in India will continue without change for now.
No Change in Retail Fuel Prices Since 2022
Sources noted that petrol and diesel retail prices in India have remained largely unchanged since 2022, despite multiple instances of geopolitical tensions pushing global crude prices higher.
Public sector oil marketing companies such as Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) have absorbed fluctuations — incurring losses when crude prices rise and benefiting when prices decline.
Political and Economic Considerations
With upcoming Assembly elections in states such as Tamil Nadu, Kerala, West Bengal, and Assam, the Centre is reportedly cautious about increasing fuel prices and inviting political criticism.
Officials indicated that only a sustained and extreme rise in international crude oil prices would prompt reconsideration of retail fuel price hikes.
Monitoring Supply Amid Hormuz Concerns
India imports nearly 88% of its crude oil requirements. Amid Iran’s warning to close the Strait of Hormuz, concerns over supply disruptions have intensified.
Union Petroleum Minister Hardeep Singh Puri held consultations with ministry officials and public sector oil companies to review crude oil, petroleum, and LPG supplies to India.
Following the meeting, the Petroleum Ministry stated in a social media post that the government is taking all necessary steps to ensure uninterrupted availability of petroleum products across the country.
The situation continues to be closely monitored as global energy markets remain volatile.
Source : Dinamani
