Government Holds Petrol And Diesel Prices Despite Crude Oil Crossing $100 Per Barrel

According to a report from CNBC-TV18 that cites government sources, the Indian government has not raised the prices of petrol and diesel even though the price of crude oil around the world has gone above $100 per barrel. This is because the government has told state-run oil marketing companies to absorb the cost for now.

This news comes after a big jump in the price of crude oil on the world market. This happened because tensions in the Middle East are rising, and there are fears that oil supplies could be disrupted along important shipping routes.

According to Reuters, U.S. benchmark West Texas Intermediate (WTI) crude rose 17.4% to $106.8 per barrel, while Brent crude increased 15.65% to $107.2 per barrel. The rise pushed crude prices above the $100 level for the first time since 2022.

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Retail Fuel Prices Remain Unchanged

Despite the surge in global crude oil prices, retail fuel prices in India remained unchanged on the latest update.

In Mumbai, petrol was priced at ₹103.49 per litre while diesel stood at ₹90.01 per litre, according to data from Indian Oil Corporation (IOC). Fuel prices in other major cities also remained unchanged during the period.

India follows a dynamic fuel pricing system under which petrol and diesel prices are revised regularly based on international crude oil prices and the rupee–U.S. dollar exchange rate.

However, during periods of sharp volatility in global oil markets, the government has occasionally asked oil marketing companies to absorb price fluctuations instead of immediately passing them on to consumers.

Impact On Oil Marketing Companies

The current situation means that oil marketing companies may have to absorb the rise in crude oil prices through their operating margins if retail fuel prices remain unchanged.

India’s state-run oil marketing companies include Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited. These companies collectively manage the majority of fuel retail outlets across the country.

According to industry data, these companies import crude oil, refine it into petroleum products, and distribute fuels such as petrol, diesel, and liquefied petroleum gas across India.

Global Energy Market Developments

Crude oil prices have risen sharply due to escalating geopolitical tensions in the Middle East. Concerns have also increased about possible disruptions in shipments through the Strait of Hormuz, one of the world’s most important oil transit routes.

The rise in oil prices has triggered volatility in global financial markets. According to Reuters, Asian equity markets declined in early trading as investors assessed the inflationary impact of higher energy prices.

For India, which imports a large share of its crude oil requirements, global oil price movements remain a key factor influencing domestic fuel costs and the financial performance of oil marketing companies.