Before Holi, common people got good news on petrol and diesel, the government made a big plan!

Following the US and Israeli attacks on Iran and Tehran's retaliatory strikes, the price of crude oil in the international market has increased by approximately 9 percent. This has led to speculation that petrol and diesel prices may rise in the coming days. 

It is estimated that due to the deepening Middle East crisis, crude oil prices could surpass $100 per barrel. 

This will inevitably lead to an increase in petrol and diesel prices by petroleum companies. However, some other news is emerging from the government, which could provide significant relief to the common people.

Meanwhile, Gulf crude oil, Brent crude, has reached close to $80 per barrel, while US-traded crude oil has risen 8.6 percent to $72.79, up from around $67 on Friday. 

For India, which imports 88 percent of its crude oil needs, higher global prices translate into higher import costs and potential inflationary pressures. Let us also tell you what kind of news is coming out, citing sources.

Signs of great relief to the common people

However, sources said retail fuel prices are unlikely to rise immediately, as the government allows companies to make margins when international prices are low and is following a well-thought-out policy of providing relief to consumers when rates rise. Retail prices of petrol and diesel have remained stable since April 2022.

Petroleum companies like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) incur losses when prices are high and profit when rates are low. 

With assembly elections approaching in crucial states like West Bengal, Tamil Nadu, and Assam, the government doesn't want anything the opposition can exploit.

Minister held a meeting with officials

Amid escalating military conflict in West Asia, Petroleum Minister Hardeep Singh Puri on Monday reviewed the situation on crude oil, LPG, and other petroleum products with senior officials from his ministry and public sector companies.

India meets 88 percent of its crude oil needs and nearly half of its natural gas through imports. Most of these come through the Strait of Hormuz, which Iranian officials have threatened to close following the US and Israeli attacks.

Information received from the Ministry

The ministry said in a post on X that it is continuously monitoring the evolving situation and will take all steps to ensure the availability and affordability of key petroleum products in the country. 

Following the US and Israeli attacks, Iran has warned against sailing through the strait and insurance companies have withdrawn insurance cover, effectively halting tanker movement. India – the world's third-largest oil importer – imports nearly half of its oil needs through the narrow strait.

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