More Stories

Informist, Monday, Mar. 9, 2026

 

--Govt source: Expect crude oil prices to remain around $100/bbl 
--Govt source: Need to accelerate energy imports from non-Gulf nations 
--Govt source: Unlikely to hike petrol, diesel pump prices in near future 
--Govt source: Don't see petrol, diesel price hike with crude at $100-$128/bbl 
--Govt source: India has enough stocks of ATF, don't see hike in air fares

 

NEW DELHI – The government does not see a rise in petrol and diesel prices in the foreseeable future, a top oil ministry official said Monday, allaying fears of a rise in prices due to the conflict in West Asia. "This is not a normal situation, and the government cannot say how long the war will continue, but as long as crude oil prices are around $100-$128 per barrel, very unlikely pump prices will go up," the official said. 

 

The official further said that oil marketing companies like Indian Oil Corp. Ltd. and Hindustan Petroleum Corp. Ltd. have in the past absorbed the hit from higher global crude oil prices by not raising the retail price domestically. Their financial health is in good shape, and they have agreed to absorb the hit as of now, the official said. 

 

With rising, and more importantly, prolonged tension in West Asia, Brent crude oil price touched $119.50 per barrel Monday, the highest since June 2022. India had last raised petrol and diesel prices in October 2024, a marginal 5 paise increase, and kept it stable despite the fluctuations seen in global prices. Despite the sharp increase in crude oil prices, the official said that the government expects it to average $100 per barrel. The official did not specify the time period during which crude is seen around that level.

 

India currently faces fresh geopolitical risks after Israel and the US launched joint military strikes on Iran Saturday, prompting retaliation from Tehran. Iran's Supreme Leader, Ayatollah Ali Hosseini Khamenei, and several of the country's top military leaders were killed in the first wave of attacks by Israel and the US. Iran has since retaliated against Israel and also targeted US military installations around the Persian Gulf.

 

Iran has also shut the Strait of Hormuz, a narrow waterway that connects the Persian Gulf to the Indian Ocean, resulting in a sharp jump in prices of crude oil and natural gas. A fifth of the global crude oil supply flows through the Strait of Hormuz. About half of India's crude oil imports – primarily from Iraq, Saudi Arabia, the United Arab Emirates, and Kuwait – also pass through the strait, making the country particularly vulnerable to shipping bottlenecks there and to surging freight and insurance rates.

 

According to the official, earlier 138 ships loaded with energy cargo passed through the Strait of Hormuz, which has drastically come down to a paltry three. In this context, India needs to accelerate the diversification of its energy import destinations –especially in the non-Gulf region- to ensure the domestic ecosystem is under control. 

 

There have also been concerns in some quarters about a likely rise in airfares due to the sharp increase in fuel prices. According to the official, even that is unlikely as the government has adequate stock, which will ensure prices are under control. "India produces aviation turbine fuel and is also an exporter of it; there is no reason to be worried," the official said.  End

 

US$1 = INR 92.33

 

Reported by Priyasmita Dutta

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.