Petrol, Diesel Prices Likely to Stay Unchanged for Now Despite Global Oil Surge

New Delhi — Petrol and diesel prices in India are unlikely to be increased in the immediate future even as global crude oil prices have surged past $110 per barrel amid escalating tensions in the Middle East.

Sources indicated that the government expects state-run oil marketing companies to absorb the impact of rising crude prices for the time being, meaning retail fuel prices at petrol pumps are likely to remain unchanged across the country. This could result in lower profit margins for oil marketing companies during the current period of price volatility.

International crude benchmarks have recorded a sharp rally in recent days. West Texas Intermediate crude climbed about 27 per cent to around $116 per barrel, while Brent Crude also rose roughly 28 per cent to $116 per barrel. It is the first time since 2022 that both benchmarks have crossed the $100 mark.

The spike in prices follows rising hostilities in the Middle East and concerns over supply disruptions near the strategic shipping route of the Strait of Hormuz, through which a large portion of the world’s oil supply passes.

Despite the global rally in crude prices, domestic fuel rates in India have remained stable so far. While fuel prices in the country are generally aligned with international crude trends, the government has occasionally asked oil companies to absorb the fluctuations during periods of sharp volatility.

Officials said earlier that the country’s energy stock situation has improved, giving authorities greater confidence in maintaining stable fuel supplies.

India has also taken steps to diversify its crude oil import sources in order to reduce dependence on supply routes that could be affected by geopolitical tensions. Previously, about 60 per cent of India’s crude imports came from regions outside the Strait of Hormuz, but that share has now increased to nearly 70 per cent.

Officials noted that the first cargo shipments have already begun moving again through the Strait of Hormuz, suggesting that supply flows are gradually stabilising.

Meanwhile, Saad al-Kaabi, the energy minister of Qatar, warned that if conflict in the Middle East continues for several days, Gulf exporters could declare force majeure and halt energy deliveries. Such a development could potentially push oil prices up to $150 per barrel and natural gas prices to around $40 per MMBtu in the coming weeks.

Amid the global price spike, Donald Trump, President of the United States, said the rise in oil prices should be viewed as a temporary consequence linked to efforts to counter Iran’s nuclear ambitions.

With inputs from IANS