New Delhi, March 9: Despite escalating tensions in the Middle East pushing global crude oil prices above $110 per barrel, the likelihood of rising petrol and diesel prices in India remains low for now.
According to sources, the government is optimistic that state-owned oil marketing companies (OMCs) will absorb the impact of international oil price hikes, allowing fuel prices to remain stable. This may require oil companies to operate with reduced profits for a while.
In the global market, West Texas Intermediate (WTI) crude has surged nearly 27%, reaching $116 per barrel, while Brent crude has also risen approximately 28% to the same price. This marks the first time since 2022 that both major benchmarks have surpassed $100 per barrel.
The sharp rise in oil prices is attributed to increasing conflicts in the Middle East and disruptions in the Strait of Hormuz.
Despite this, retail prices for petrol and diesel across India remain unchanged. Typically, fuel prices in India are adjusted according to global crude oil rates; however, during periods of significant market volatility, the government occasionally asks oil companies to shoulder the price burden.
Earlier, government sources indicated that petrol and diesel prices would not increase. They noted that India’s energy reserves are improving, leading to a gradual stabilization of the situation.
The enhancement of energy reserves has bolstered the government’s confidence in managing fuel supply. Additionally, India has taken steps to diversify its crude oil imports to reduce reliance on sensitive maritime routes.
Previously, approximately 60% of India’s total crude oil imports came from sources outside the Strait of Hormuz, but this figure has now risen to about 70%.
Sources also mentioned that the first oil shipment from the Strait of Hormuz has departed, signaling a gradual return to normalcy in oil supply.
Meanwhile, Qatar’s Energy Minister Saad Al-Kaabi has warned that if the conflict in the Middle East continues for several more days, Gulf exporters may declare force majeure, potentially halting oil supplies. In such a scenario, crude oil prices could soar to $150 per barrel, with natural gas prices reaching $40 per MMBtu.
U.S. President Donald Trump defended the recent spike in oil prices, stating it is a temporary cost of confronting the Iranian nuclear threat. He assured that prices would decrease once the threat is resolved.
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Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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