No Hike In Petrol, Diesel Prices Despite Crude Crossing $100 Per Barrel; Govt Asks Oil Firms To Absorb Impact

India is unlikely to see an immediate increase in petrol and diesel prices even as global crude oil prices have surged above $100 per barrel. Government sources indicated that state-run oil marketing companies (OMCs) may have to absorb the impact of rising crude prices for the time being to keep retail fuel rates stable.

The surge in crude prices comes amid escalating geopolitical tensions in the Middle East and concerns over potential supply disruptions through the Strait of Hormuz — one of the world’s most crucial oil shipping routes. Global benchmarks have jumped sharply, with West Texas Intermediate (WTI) crude rising to about $106.8 per barrel and Brent crude touching around $107.2 per barrel, marking the first time since 2022 that prices have crossed the $100 mark.

Despite the spike in international oil prices, domestic retail fuel prices in India have remained unchanged so far. In Mumbai, petrol is currently priced at around ₹103.49 per litre while diesel costs about ₹90.01 per litre. Officials said the government wants OMCs to absorb the short-term volatility in crude prices rather than immediately passing the burden on to consumers.

If global crude prices remain elevated for a prolonged period, however, the pressure on oil marketing companies’ margins could increase significantly. Maintaining frozen pump prices could lead to reduced profitability for the state-run fuel retailers in the near term.

India imports a large share of its crude oil requirements, making the country vulnerable to fluctuations in global energy prices. A sustained rise in crude prices can increase the country’s import bill and potentially push inflation higher, prompting the government to closely monitor developments in global oil markets.

For now, authorities appear focused on shielding consumers from sudden fuel price hikes while assessing how long the global oil rally may last.