Government sources indicated on Thursday that retail prices of petrol and diesel across India will remain stable despite escalating risks from the ongoing Iran conflict disrupting global crude supplies. Officials from the Petroleum Ministry attributed the decision to oil marketing companies (OMCs) absorbing international volatility through inventory buffers and marketing margins, shielding consumers from immediate hikes even as Brent crude breached $95 per barrel.

India, the world's third-largest oil importer, relies heavily on West Asian supplies, with Iran tensions exacerbating supply chain strains alongside US sanctions and Red Sea disruptions. Recent data shows OMCs like Indian Oil, BPCL, and HPCL maintaining steady pricing since early March, with Delhi petrol at ₹94.77 per litre and diesel at ₹87.67—unchanged for over a week despite a 5% crude rally linked to military escalations.

The stability reflects a deliberate policy under the dynamic pricing regime introduced in 2017, where daily revisions by OMCs factor in global benchmarks but prioritise fiscal prudence amid domestic inflation concerns. Sources noted ample strategic reserves covering 10-12 days of demand, supplemented by discounted Russian crude imports that have kept under-recoveries manageable at around ₹5-7 per litre.

Also Read: PM Modi Reviews LPG Supply and Energy Security with Key Ministers Amid Iran War

This approach contrasts with early March fluctuations, where minor hikes occurred in cities like Patna (petrol up 69 paise) and Chennai before stabilising. Southern states like Andhra Pradesh report petrol at ₹109.42 and diesel at ₹97.23, while metros remain below ₹105, underscoring regional variations tied to local levies but no broad Iran-driven surge.

Economists caution that prolonged conflict could test these buffers, potentially forcing OMCs to revise rates if crude sustains above $100. The government is monitoring alternatives like ramping up US and Latin American imports while urging ethanol blending to hit 20% targets, reducing oil dependency by 5-6 million tonnes annually.​

The assurance aligns with broader economic messaging amid geopolitical headwinds, reassuring motorists, transporters, and industries ahead of peak summer demand. With no policy shift announced, consumers can expect continuity barring unforeseen supply shocks from the Iran theatre.

Also Read: Om Birla Faces Down Opposition Storm in Parliament Clash