West Asia tensions: Indian fuel prices remain unchanged despite global oil surge

Petrol and diesel prices in India are unlikely to rise immediately even though global crude oil prices have crossed USD 110 a barrel due to increasing tensions in the Middle East the IANS reportedThe government has asked staterun oil companies to absorb the extra cost for now meaning consumers will not see higher pump prices in the short term according to the news agencySources said told the IANS that oil marketing companies OMCs may face lower profits because of the rise in international crude prices but the retail fuel rates across India will remain unchanged for the momentGlobal oil prices hit new highsInternational oil markets have seen a sharp increase recently West Texas Intermediate WTI crude rose 27 percent to USD116 per barrel while Brent crude climbed 28 percent to USD 116 This is the first time since 2022 that both benchmarks have crossed the USD100 markThe surge comes amid escalating conflicts in the Middle East and supply disruptions at the Strait of Hormuz a key global shipping route for oilDomestic fuel prices remain unchanged thanks to our governmentDespite the jump in global crude Indiarsquos domestic petrol and diesel rates have not been adjusted Usually fuel prices in India are revised in line with international oil movements However in times of extreme volatility the government sometimes asks oil companies to absorb the price change to protect consumers as per the IANSGovernment sources confirmed on Saturday that fuel prices will not rise immediately They also noted that Indiarsquos energy stock position is improving and becoming more stable which gives authorities confidence in managing supplyDiversifying oil imports reduces riskIndia has been working to reduce dependence on vulnerable shipping routes like the Strait of Hormuz Previously about 60 percent of the countryrsquos crude oil imports came from sources outside this route That share has now increased to around 70 percentOfficials mentioned that the first oil cargo has already started moving through the Strait of Hormuz showing that supply flows are stabilising according to the IANSMiddle East conflict and price risksExperts warn that the ongoing war in the Middle East could further impact oil supplies Qatarrsquos Energy Minister Saad alKaabi cautioned that if hostilities continue for even a few days Gulf exporters might declare force majeure or greater force halting deliveries This could push crude oil prices to USD 150 per barrel and natural gas to USD 40 per MMBtu in just a few weeks the IANS reportedMeanwhile US President Donald Trump commented that the higher oil prices are a temporary effect related to confronting Iranrsquos nuclear threatOutlook for consumersFor now Indian consumers can expect petrol and diesel prices to stay stable thanks to government intervention and improved energy stock levels However experts warn that prolonged tensions in the Middle East or further supply disruptions could eventually affect global and domestic fuel pricesWith IANS Inputs