Will Petrol and Diesel Prices Rise? Centre Issues Clarification

Discussions are intensifying over the possibility of a rise in petrol and diesel prices in India due to global developments. Crude oil prices have increased significantly as tensions continue in West Asia. In particular, disruptions in transportation through the Strait of Hormuz are affecting India’s crude oil imports. As a result of these developments, Brent crude prices have reportedly risen to $104 per barrel. According to a report by Kotak Institutional Equities, market circles believe a decision on fuel price revision may come after the ongoing election process concludes.

The failure of US-Iran peace talks and rising attacks on commercial vessels have created concerns in the global market. Since the Hormuz route accounts for nearly 20 percent of global oil supply and around 40 percent of India’s imports, pressure on the supply chain has increased considerably. Meanwhile, the Central Government has denied reports suggesting an imminent hike in petrol and diesel prices. Responding to the speculation, the Ministry of Petroleum clarified that the government currently has no plans to increase fuel prices.