Crude oil climbs to new highs amid West Asia tensions, raising fresh questions over petrol and diesel costs in India

India keeps petrol and diesel prices steady even as global crude oil costs hit record highs due to the West Asia conflict, offering temporary relief to consumers.

Petrol Diesel Price Today — Rising global oil prices spark concern, but what it means for petrol and diesel in India is the real story unfolding now.

West Asia conflict has resulted in significant geopolitical turmoil in recent weeks, resulting in crude oil prices shooting past several key levels. An immediate effect of this development has been seen on global import bills of crude oil which have skyrocketed to record highs.

In India too, import prices of crude oil have spiked upwards with reports suggesting that on an average the cost of crude oil imports into India has surged by over ₹100 per barrel, or over 120%, to ₹156 per barrel.

Fuel prices across the world have already begun seeing higher spikes by as much as 60-70% in many countries.

Will Petrol Diesel Prices Rise Soon In India?

India’s fuel consumers have however been spared any sharp spike in petrol and diesel prices across the country for the past few days despite some uptick in global crude prices.

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State owned as well as private fuel retailers OMCs in India have absorbed the increase in input costs without passing it on to customers by keeping retail petrol and diesel prices unchanged for consecutive days.

Also read: US gives 30-day waiver on purchase of Iranian oil; 140 million barrels to enter global market; petrol and diesel prices to remain stable

Petrol and Diesel Prices Remain Unchanged in Latest Price Hike Suspension

India Today Technology reported that Oil Marketing Companies (OMCs) have not changed fuel prices even after daily revision in select premium petrol grades. While fuel prices may have been maintained for Indian consumers for now, oil marketing companies have come under pressure from rising crude prices with prices of premium variants of petrol already increasing by ₹2 per litre or more.

Oil companies have also reportedly been able to maintain crude inventories at comfortable levels while maximising refinery throughput in India which has helped absorb some of the shock.

India has also benefitted from “responsible pricing” of petrol and diesel by oil companies along with Government efforts such as through taxes and control on rates.

How Long Will India Hold The Line On Petrol Diesel Prices?

Petrol and diesel prices in India have so far held steady as government agencies, oil companies, and fuel retailers work to limit the impact of the West Asia crisis on Indian consumers. This however may change in the coming weeks if crude prices continue to rise and/or panic starts setting in global markets.

Indian government has previously stated that the ongoing conflict between Israel and Hamas can impact India’s energy security and drive inflation higher. India is currently one of the few countries where retail prices of petrol and diesel haven’t gone up in response to record high crude oil prices.

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The Times Of Bengal