Diesel Prices Jump in India as Global Oil Crisis Hits Consumers

Bulk Diesel Up Rs 22 in Delhi

On Friday, however, the price of bulk diesel for industrial users jumped by about Rs 22 per litre, reflecting the global rise in oil prices amid the turmoil in the Middle East. For context, in Delhi, the price for bulk diesel increased from Rs 87.67 to Rs 109.59 per litre, while the prices for regular diesel and petrol held steady at Rs 87.67 and Rs 94.77 per litre, respectively.

No Hike Plans, Govt Assures

Sujata Sharma, the joint secretary of petroleum and natural gas, reassured the public during a media briefing that there are currently no plans for a price hike on regular petrol and diesel. The government is closely monitoring global oil markets , but for now, they have no immediate plans to increase retail fuel prices.
"Our priority is to make energy available to all consumers, which we have been doing all through the crisis. Till now we have not increased the prices," Sharma added.

OMCs Bear the Cost Burden

Major oil marketing companies in India, such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL), are managing the situation by absorbing the current cost pressures.
These companies adjust fuel prices daily at 6 a.m. to keep in line with international crude oil prices and currency exchange rates. It's worth noting that India relies heavily on imports for its crude oil—about 88 percent of its needs—and around half of its natural gas, primarily sourced from the area around the Strait of Hormuz.

Strait of Hormuz Shipping Slows Oil Flow

In light of recent US and Israeli military actions against Iranian facilities, Iran has issued warnings to shipping in the region, leading to a significant slowdown in tanker movements as insurers retreat from covering risks. The ongoing geopolitical tensions in the Middle East have unsettled global energy markets, pushing Brent crude prices close to $108 a barrel this week. This unrest has also led to a near halt in shipments through the Strait of Hormuz, which is crucial for oil transport.