As of March 20, premium fuel prices rose from ₹2.09 to ₹2.35 per litre across state-run oil marketing organisations, including as Hindustan Petroleum Corporation Limited and Indian Oil Corporation Limited, in response to increasing global crude oil prices caused by geopolitical concerns in West Asia.
Branded fuels like Power petrol and XP95 used to cost around ₹111.68 per litre, but after the change they are now priced at around ₹113.77 per litre. Still, conventional petrol and diesel remain stable in price, which is good news for customers for the time being.
The price adjustment is happening at a time when the oil markets throughout the world are very volatile. Following recent escalations in the Gulf region, Brent crude jumped to over $111.78 per barrel and West Texas Intermediate (WTI) climbed to roughly $99.57 per barrel.
Global energy supply problems were raised as tensions rose following reports of strikes involving Iran and Israel. These strikes reportedly targeted important energy infrastructure, including the South Pars gas field and Ras Laffan Industrial City in Qatar.
The continued unpredictability of international markets has significant consequences for the cost of petrol in India, a country that imports about 90% of its crude oil.
According to experts in the field, oil marketing organisations have been covering the expenses of conventional fuels up to this point, but if geopolitical tensions continue, the sustained rising pressure on crude prices could cause larger price revisions in the coming weeks.
