India's Fuel Prices Remain Steady Amid Rising Global Oil Costs

In light of escalating global crude oil prices, India has decided to keep petrol and diesel prices stable for now. The government expects state-run oil marketing companies to absorb the impact of rising costs, allowing consumers to benefit from unchanged fuel prices. With a focus on diversifying crude oil imports and improving energy stock, India aims to manage its fuel supply effectively. This article explores the current situation and potential future implications for fuel prices amid ongoing tensions in the Middle East.

By Narendra Chaudhary Mar 9, 2026, 12:35 IST

Current Status of Fuel Prices in India

As of March 9, New Delhi reports that petrol and diesel prices in India are not expected to rise immediately, even as global crude oil prices surpass $110 per barrel due to increasing tensions in the Middle East.

The government anticipates that state-run oil marketing companies (OMCs) will absorb the financial impact for the time being, keeping fuel prices stable. This may result in reduced profits for OMCs as international oil prices surge.

West Texas Intermediate crude has surged by 27% to $116 per barrel, while Brent crude has increased by 28% to the same price, marking a significant milestone as both benchmarks exceed the $100 threshold for the first time since 2022. This price hike is attributed to rising conflicts in the Middle East and supply disruptions at the Strait of Hormuz.

Despite the increase in global oil prices, domestic fuel prices across India remain unchanged. Typically, India adjusts retail fuel prices in accordance with global crude fluctuations; however, the government has occasionally instructed oil companies to absorb these price changes during periods of significant volatility.

Government sources indicated on Saturday that there would be no increase in petrol and diesel prices, noting that India's energy stock situation is improving and becoming more stable.

The enhanced energy stock situation has bolstered the government's confidence in managing fuel supplies effectively. Additionally, India is diversifying its crude oil imports to lessen reliance on vulnerable shipping routes.

According to sources, India has increased its crude oil imports from alternatives to the Strait of Hormuz. Previously, around 60% of India's crude oil imports originated from outside this strategic route, but this figure has now risen to approximately 70%.

The first cargo has already begun transit through the Strait of Hormuz, suggesting that supply flows are stabilizing.

Qatar's energy minister, Saad al-Kaabi, has cautioned that if the conflict in the Middle East persists for a few days, Gulf exporters may declare force majeure, halting deliveries and potentially driving oil prices to $150 per barrel and natural gas to $40 per MMBtu within weeks.

US President Donald Trump has defended the rise in oil prices, attributing it to temporary costs associated with addressing Iran's nuclear threat.