{"id":"f-445134d771-660a807f-b750-54a0-8be1-3de41b04d27f","title":"Will Petrol, Diesel Prices Rise In India? 5 Key Factors That Will Decide Fuel Costs In Coming Days — Check City-Wise Rates","description":"Amid the Iran conflict, crude prices are rising globally, but petrol and diesel rates in India remain unchanged as OMCs absorb costs. The government says adequate stock and supplies ensure no immediate price hike.","timestamp":1772721495,"category":"national_v_two","headline":"Will Petrol, Diesel Prices Rise In India? 5 Key Factors That Will Decide Fuel Costs In Coming Days — Check City-Wise Rates","modifiedHeadline":"Will petrol, diesel cost rise in India?Key factors","subCategories":["scid_b6669955"],"subcategoriesName":["National"],"region":"IN","bundleMetaData":{"bundleId":"7b48871c-c993-4956-b43d-6f46f8e1b036","bundleTitle":"Today In India","cardData":null},"iabCategoryId":"86","iabCategoryName":"Gasoline Prices","fcSummary":"Rising tensions in the Middle East, particularly involving Iran, have sparked concerns about potential fuel price increases in India. Despite recent jumps in global crude oil prices, retail petrol and diesel prices have remained stable so far, with the government employing a strategy where oil companies absorb some price shocks. Experts warn prices could rise significantly if the conflict escalates, potentially reaching $90-$100 per barrel, impacting india's energy security.","summary":"India's fuel prices unchanged despite rising crude amid Iran conflict. OMCs absorb costs; no immediate hike expected, govt sources say.","ctaUrl":"https://trends.glance.com/newz/news/IN/en/timesnow/f-445134d771-660a807f-b750-54a0-8be1-3de41b04d27f","sourceUrl":"https://www.timesnownews.com/business-economy/economy/will-petrol-diesel-prices-rise-in-india-5-key-factors-that-will-decide-fuel-costs-in-coming-days-check-city-wise-rates-article-153759729","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/KHnOrEzdhD30.webp","content":"

New Delhi: As tensions rise in the Middle East following the conflict involving Iran, concerns have grown about a possible increase in petrol and diesel

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prices in India. However, despite a recent jump in global crude oil prices, fuel rates in major Indian cities have remained unchanged so far. According to government sources cited by PTI, retail petrol and diesel prices are not expected to rise immediately. The government is reportedly following a calibrated approach that allows oil marketing companies (OMCs) to build margins when global crude prices are low and absorb shocks when prices rise. A report by brokerage firm Nomura noted that OMCs may absorb part of the current rise in crude prices instead of fully passing it on to consumers. Also Read: Iran War Chokes Global Oil Supply as Tanker Traffic Through Strait of Hormuz Collapses The report added that the government’s earlier decision not to cut retail fuel prices when global crude had fallen has created a buffer for companies to manage the latest surge. “In theory, a 10% jump in global crude prices could add around 50 basis points to inflation if the entire increase is passed on to consumers, compared with the earlier estimate of 30 basis points. However, such pass-through rarely happens immediately,” the report said. “Retail prices of petrol and diesel are unofficially pegged, with OMCs absorbing the impact through their balance sheets,” Nomura added. Crude oil prices have already risen significantly amid the geopolitical crisis. Since the United States and Israel launched attacks on Iran, Brent crude has climbed about 16.8%, while WTI crude has increased by around 14%.

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Outlook for Oil Prices

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\nBrokerage firm Citi has warned that crude prices could test USD 90 per barrel if geopolitical risk premiums remain high. According to its outlook, oil prices may stay elevated for a longer period if the conflict involving Iran continues or spreads across the region.\n
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\nHowever, if tensions ease quickly, prices could fall back toward USD 70 per barrel, Citi said.\n
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\nGoldman Sachs issued a stronger warning. The brokerage said that if oil flows through the Strait of Hormuz are disrupted for the next five weeks, Brent crude could surge to USD 100 per barrel.\n
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\nNearly 20% of the world’s oil supply passes through the Strait of Hormuz, and more than 40% of India’s crude imports travel through this route, making it a critical chokepoint for India’s energy security.\n
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Why Petrol Prices Could Still Rise

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\nAjay Kedia, Director at Kedia Advisory, said fuel prices could still rise if global conditions worsen.\n
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\nAccording to a report by Kedia Research, regime changes or instability in oil-producing nations have historically triggered major price shocks, with crude prices rising about 76% on average from the start of disruptions to the peak.\n
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Several factors could increase fuel costs for India:
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Rising crude prices: Oil has already climbed to around USD 84 per barrel and could rise to USD 88–90 if tensions escalate.
Stronger dollar and weaker rupee: The US dollar index has strengthened to around 99, while the Indian rupee has fallen to about 92.50 per dollar, making oil imports more expensive.
Shift in sourcing: India has increased imports from Venezuela, which is relatively more expensive than crude from Iran or Russia.
Higher insurance costs: Shipments from Venezuela carry higher insurance premiums, raising the total import bill.
Limited oil stockpiles: India currently has 20–25 days of crude inventory, and prolonged disruption could increase supply pressures.

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Government Says No Need to Panic

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\nGovernment sources told ET NOW that India currently has adequate fuel reserves and there is no immediate supply concern.\n
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\n\"We have sufficient stock of crude,\" government sources said.\n
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\n\"There is no need to panic.\"\n
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\n\"Oil Ministry is in touch with all stakeholders.\"\n
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\n\"There is a military conflict in full swing.\"\n
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\n\"It is important to be prepared in advance to face any kind of situation.\"\n
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\n\"We are monitoring the situation constantly.\"\n
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\n\"No decision has been taken on the sourcing of crude.\"\n
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\n\"We are nowhere near the position of taking corrective measures to meet domestic requirements.\"\n
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\n\"We are in a comfortable position as far as stock is concerned.\"\n
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\n\"We have 25 days of crude stock along with 25 days of product stock.\"\n
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\n\"Essentially, we have an effective stock of 50 days to meet domestic requirements.\"\n
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\n\"We have 25-30 days of LPG stock.\"\n
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\n\"More volumes are in transit.\"\n
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\n\"There is no dearth of supply.\"\n
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\n\"We have sufficient availability of LNG as well to meet domestic requirements.\"\n
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\n\"Only 40 per cent of the cargoes are coming through the Straits of Hormuz.\"\n
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\n\"There is a temporary pause in supply.\"\n
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\n\"Supply is not an issue, but insurance and freight costs are.\"\n
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\n\"Govt is well prepared to supply petroleum products at affordable price.\"\n
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\n\"OMCs are well prepared to safeguard the interests of consumers.\"\n
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Fuel Prices in Major Cities

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\nAs of March 5, 2026, petrol and diesel prices in major cities were:\n
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\nNew Delhi: Petrol Rs 94.77, Diesel Rs 87.67\n
\nHyderabad: Petrol Rs 107.46, Diesel Rs 95.70\n
\nBengaluru: Petrol Rs 102.92, Diesel Rs 90.99\n
\nChennai: Petrol Rs 100.84, Diesel Rs 92.39\n
\nKolkata: Petrol Rs 105.45, Diesel Rs 92.02\n
\nLucknow: Petrol Rs 94.69, Diesel Rs 87.81\n
\nJaipur: Petrol Rs 104.72, Diesel Rs 90.21\n

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Will Petrol, Diesel Prices Rise In India? 5 Key Factors That Will Decide Fuel Costs In Coming Days — Check City-Wise Rates

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