Will Petrol and Diesel become more expensive? Latest Update is here 

Petrol and Diesel Prices: International crude oil prices have surged by almost 9 percent due to the US and Israeli strikes on Iran, along with Tehran’s counter attacks. However, sources indicate that retail petrol and diesel prices in India are not expected to increase in the near term. The global benchmark for Brent crude is nearing USD 80 per barrel, while US-traded crude oil has jumped 8.6 percent to USD 72.79, up from approximately USD 67 last Friday.

What does this mean?

For India, which relies on imports for 88 percent of its crude oil requirements, rising global prices lead to higher import expenses and possible inflationary effects. Nevertheless, sources suggest that retail fuel prices are unlikely to rise immediately, as the government is implementing a strategic policy that allows companies to earn margins when international prices are low and offers consumer relief when prices increase.

Stability in Retail Prices

Since April 2022, retail prices for petrol and diesel have remained unchanged. Companies such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) are facing losses when prices are elevated but are profitable when rates drop.

Watch these states closely

With assembly elections approaching in key states like West Bengal, Tamil Nadu, and Assam, the government is cautious about any developments that the opposition could exploit. Amid the rising military tensions in West Asia, Petroleum Minister Hardeep Singh Puri convened a meeting on Monday to assess the situation regarding crude oil, LPG, and other petroleum products with senior officials from his ministry and public sector companies.

India imports 88 percent of its crude oil and nearly half of its natural gas, with most of these imports passing through the Strait of Hormuz, which Iranian authorities have threatened to close in response to the US and Israeli attacks.

What the Ministry said?

“We are continuously monitoring the evolving situation and will take all steps to ensure the availability and affordability of key petroleum products in the country,” the ministry said in a post on X. Following the US and Israeli attacks, Iran has warned against shipping away from the strait and insurance companies have withdrawn insurance cover, effectively halting tanker movement. India – the world’s third-largest oil importer – imports nearly half of its oil needs through the narrow strait.