No Price Hike Despite $100 Oil: Govt Confirms 2-Month Fuel Supply Amid Iran Crisis

India's crude oil inventories remain adequate, with the government securing sufficient supplies for the next two months, said Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, on Wednesday during an inter-ministerial briefing amid the ongoing West Asia crisis.
Assuring stability in fuel supply, Sharma said, "Our refineries are operating at the highest levels. There have been no reports of any dry-out at retail outlets."

Highlighting global price trends, she noted, "Around two months ago, Brent crude was trading in the range of $70 per barrel, and today it has crossed $100 per barrel." Despite this sharp rise, she emphasised, "No increase has been made in petrol and diesel prices for domestic consumers."
She added, "Petrol and diesel prices have not been increased since April 6, 2022, and in March 2024, prices were reduced by Rs 2, which continues to remain in effect."

On government measures, Sharma said, "To protect domestic consumers from international price volatility, the Government of India reduced excise duty to ensure that there is no increase in prices." However, she acknowledged, "Prices have been maintained, resulting in under-recoveries for our Oil Marketing Companies (OMCs) on both petrol and diesel."

She further stated, "To ensure the availability of ATF and diesel in the domestic market, the Indian government has imposed an export levy."

Urging calm, Sharma said, "I would like to assure that we have sufficient quantities of petrol and diesel available, and I request all citizens to kindly avoid panic buying."

On natural gas supply, she said, "100 per cent supply has been ensured for domestic consumers and CNG transport." She added that expansion efforts are underway, stating, "Around 325,000 connections were supplied with gas in March, 285,000 new connections were provided, and 350,000 new consumers registered for connections."

Regarding LPG, Sharma said, "Our import dependency is approximately 60 per cent." She pointed out, "International LPG prices (Saudi CP benchmark) have increased significantly from $522 to $780. However, despite this, there has been no increase in LPG cylinder prices for domestic consumers."
She added, "Due to this price rise, Oil Marketing Companies (OMCs) will face under-recoveries, as they have in the past." Noting government support, she said, "In 2023, the government provided around Rs 22,000 crore to OMCs, and for 2025-26, approximately Rs 30,000 crore has been approved to cover such losses."

On supply status, Sharma said, "No dry-out has been reported at any LPG distributorship. Around 60 lakh cylinders were delivered yesterday."

She also noted, "For commercial LPG, the government has ensured about 70 per cent of supplies," adding, "Additional kerosene has also been allocated to states and Union Territories as an alternative fuel."

On enforcement measures, Sharma said, "State governments have been requested to help effectively control rumours and panic. Around 2,800 raids have been conducted, and nearly 500 cylinders have been seized."

Reiterating her appeal, she said, "I urge everyone to avoid panic buying of petrol, diesel, and LPG. Prices for domestic use of LPG, petrol, and diesel have not been increased."

The West Asia crisis begun on February 28 by US-Israel strikes on Iran and subsequent Iranian retaliation.

Also read: GNP TO GDP: What's The Right Measure Of Progress?