New Delhi, March 9 (SocialNews.XYZ) Petrol and diesel prices in India are unlikely to be raised immediately despite global crude oil crossing $110 a barrel amid the escalating Middle East tensions.
Government currently expects state run oil marketing companies (OMCs) to absorb the impact for now and pump prices of fuels will remain the same. OMCs may have to accept lower profits amid the spike in international oil prices, according to sources.
West Texas Intermediate rose 27 per cent to $116 per barrel, while Brent crude gained 28 per cent to $116, marking the first time since 2022 that both benchmarks crossed the $100 mark. The spike followed escalating hostilities in the Middle East amid supply disruptions at the Strait of Hormuz.
Despite the rally, domestic pump prices remained unchanged nationwide. Though India typically adjusts retail fuel prices in line with global crude movements, the government has occasionally asked oil companies to absorb price changes amid huge volatility.
Earlier, government sources said on Saturday that petrol and diesel prices will not increase, adding that India’s energy stock position is improving and the situation is becoming more stable.
The improving energy stock situation has given the government greater confidence in managing fuel supplies. India has also taken steps to diversify its crude oil imports to reduce dependence on vulnerable routes.
“India has increased its crude oil imports from sources other than the Strait of Hormuz. Earlier, about 60 per cent of India’s crude oil imports came from sources outside the strategic shipping route, but that share has now increased to around 70 per cent,” according to cources.
“The first cargo has already started moving through the Strait of Hormuz -- indicating that supply flows are stabilising,” they mentioned.
Qatar’s energy minister Saad al-Kaabi had warned that war in the Middle East continuing for "few days" could cause Gulf exporters declaring force majeure, halting deliveries, pushing oil to $150 a barrel and natural gas to $40 per MMBtu within weeks.
US President Donald Trump has defended the spike in oil prices, saying higher oil prices were a temporary cost tied to confronting Iran’s nuclear threat.
—IANS
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Source: IANS
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