Petrol, Diesel Prices To Remain Stable Despite Iran War Risks: Government Sources

Petrol and diesel prices in India will remain stable for now despite global concerns over the Iran-US conflict, government sources told NDTV. The government has activated a fuel supply management chain programme to handle any crisis situation, the source added.

On the question of disruption to the Strait of Hormuz shipping route due to the ongoing conflict, the source said, "India has increased sourcing from non-Hormuz regions from 60 per cent earlier to 70 per cent now to reduce dependence on the Middle East. Earlier, around 40 per cent of supplies came from the Middle East, however, diversification efforts are now underway... With disruptions in the Middle East, India has started sourcing oil and gas from alternative countries."

On the question of LPG price hike, the source added, "The recent gas price increase is marginal, not a major spike. No LPG distributor in the country is dry, and adequate stock are available to meet public demand."

The government source, privy to the matter, further said, "The government is very strict on black marketing. Mechanisms have been put in place to prevent black marketing of fuel and LPG. Domestic consumers remain the government's top priority in fuel and LPG supply." 

Strait of Hormuz Critical For India 

The statement comes less than a day after a Thai-flagged cargo vessel, sailing to India, was attacked near the Strait of Hormuz shortly after leaving a port in the United Arab Emirates.

Notably, India imports around 60 per cent of its total LPG demand, and nearly 80-90 per cent of these imports traditionally come from suppliers in the Middle East. As most Gulf-origin LPG sails through the Strait of Hormuz, which is at an almost blockade, domestic and commercial LPG prices were hiked across major Indian cities. 

Meanwhile, retail fuel prices in the pump has remained unchanged for now as oil marketing companies are absorbing the losses. However, India revised its consumer price index (retail inflation) last month, clubbing fuel light and gas with housing for a combined weight of 17.7 per cent from 16.9 cent earlier.