Petrol, Diesel rates in India set to remain stable: Petroleum Minister Hardeep Puri

International oil prices surged nearly 9 per cent after the United States and Israel carried out military strikes on Iran, prompting retaliatory attacks by Tehran and escalating tensions in the Middle East. Despite the sharp spike in global crude rates, retail petrol and diesel prices in India are unlikely to be increased immediately, sources said.

Brent crude climbed close to USD 80 per barrel , while US-traded crude rose 8.6 per cent to USD 72.79 from around USD 67 last week . The surge followed military strikes on Iranian government, military and nuclear facilities, triggering missile and drone attacks by Tehran on Israel and countries hosting US forces.

India, which imports nearly 88 per cent of its crude oil requirement and about half of its natural gas needs, faces heightened vulnerability as a significant portion of supplies transit through the Strait of Hormuz. About half of India’s crude oil imports and roughly 20–25% of its liquefied natural gas (LNG) imports pass through this narrow waterway. Any disruption at the strait could affect a significant portion of India’s energy supply. Reports suggest tanker movements have already been disrupted after insurers withdrew coverage amid security concerns.

Despite the volatility, retail fuel prices in India have remained frozen since April 2022. State-run oil marketing companies Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd have been absorbing losses when crude prices rise and building margins when international rates soften. Sources said the government continues to follow a calibrated policy aimed at shielding consumers unless there is an extraordinary and sustained spike in global crude prices.

Oil Minister Hardeep Singh Puri on Monday reviewed the situation with senior officials and public sector companies, assuring that all necessary steps would be taken to ensure availability and affordability of petroleum products.

Amid rising global crude oil prices, several rumours have surfaced on social media claiming that petrol and diesel prices in India will be hiked immediately. Messages suggesting an imminent fuel shortage and sharp price increase triggered panic buying at some petrol pumps in a few cities. There were also speculative claims that closure of the Strait of Hormuz would automatically push petrol prices beyond Rs 120 per litre overnight. However, there has been no official announcement from the government or the oil marketing companies regarding any immediate hike. Officials have maintained that fuel supply remains adequate and retail prices are under review based on global trends.

Analysts caution that if disruptions in the Strait of Hormuz persist, shipments may have to be rerouted, increasing transit time, freight costs and insurance premiums. Consultancy reports suggest crude prices could cross USD 100 per barrel if tanker traffic is not restored quickly. However, officials said oil companies currently have sufficient financial cushion to absorb near-term price spikes, helping keep retail fuel prices stable for now.