Officials have said the price at the pump will stay the same for now; oil companies will deal with any cost increases in the short run. The government is still using a careful pricing method – one that protects customers when costs go up internationally, and lets companies get their profits back when prices fall.
Petrol and diesel costs at the retail level haven’t really changed since April 2022. During this time, IOC, BPCL, and HPCL lost money when crude costs went up, but made it back when global prices went down. Sources also said there’s no talk right now of lowering the excise tax.
The situation with supply within the country is steady. Each petrol station is open, natural gas pipes to homes are working, and CNG stations are open. Officials have asked people to avoid buying more than they need, saying there’s enough oil in storage, and the ways to get it to people are good enough to meet normal demand.
The latest rise in crude prices comes after fighting got worse in West Asia. Brent crude went to almost $120 a barrel – about 65% higher than when the conflict began – before falling back a little. World markets were unsteady as traders thought about the chance that supplies could be stopped.
For India, which buys around 88% of the crude oil it needs, higher crude prices could make the bill for imports bigger and cause inflation. At the moment, authorities think the effect on inflation is controlled, but they’re still watching prices and supplies closely because the world political situation is changing.
The Strait of Hormuz has become a key place. Roughly 40 to 50 percent of India’s crude oil imports, and about 85 to 90 percent of its LPG shipments from the Gulf, go through this narrow waterway. Warnings to ships and less insurance coverage have, from time to time, made tanker traffic slower.
Although officials say there’s enough crude oil from other places, LPG is more difficult to quickly replace. Most of the extra LPG would have to come from the United States and Canada, which means longer trips and fewer ships available.
Government sources described India’s situation in the near future as good. The combined amount of crude and refined oil in storage can cover the country’s needs for around six to eight weeks, and getting oil from different places has helped keep supplies steady. India started to get crude oil from other suppliers early in the crisis, which lowered the risk from places where supply could be blocked.
To protect household fuel, refineries have been told to make as much LPG as possible and not send it to petrochemicals. Along with enough LPG in storage at oil companies, this is meant to keep kitchens supplied even if sea routes are still difficult.
Oil businesses will keep controlling prices and profits within the careful method already in place. Authorities are ready to change how supplies are sent to give priority to important areas if necessary, to make sure essential services aren’t stopped.
To stop people from storing up LPG and keep distribution fair, the shortest time between booking a domestic LPG refill has been increased to 25 days from 21 days. Average households use about 7 to 8 cylinders of 14.2 kg a year and don’t usually need a refill sooner than six weeks.
Officials stressed that the change in policy is aimed at artificial shortages, not real need. Because there’s enough LPG in storage and refineries are giving production priority, the system is made to meet normal use without stopping.
In the short run, retail fuel prices are expected to stay the same as the government gives importance to what customers can afford. The main risks are a long stop at the Strait of Hormuz, or crude prices staying high above current levels. Either could test import costs and how things are moved.
Key things to watch include how Brent crude goes, what the conditions are for shipping insurance in the Gulf, and any updates to how refineries are operating. For now, policy signals show things will continue as they are: enough storage, supplies from different places, and no immediate rise in petrol and diesel prices. People can expect normal operations at fuel stations, PNG networks, and CNG outlets while authorities have backup plans ready.
