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India's Fuel Prices Safe Unless Oil Hits $130; Gov't Boosts LPG Supply

Government sources indicate petrol and diesel prices are unlikely to increase in India unless global crude oil prices breach the $130 per barrel mark, with current projections around $100. The country is accelerating crude sourcing from routes outside the Strait of Hormuz to mitigate supply risks and is actively scouting for alternative gas and LPG markets. To prevent hoarding, the government has increased the minimum waiting period for booking a domestic LPG refill from 21 to 25 days. Officials reaffirm that domestic consumers will be prioritized as India engages with new potential suppliers like Algeria, Australia, Canada, and Norway.

Key Points: Petrol, Diesel Prices Unlikely to Rise Unless Crude Crosses $130

  • Fuel prices stable unless crude hits $130
  • India diversifying crude sources away from Strait of Hormuz
  • LPG cylinder booking wait period increased to 25 days
  • Country securing alternative gas and LPG supplies
  • Government prioritizing domestic LPG consumers
2 min read

Petrol, diesel prices unlikely to rise unless crude crosses $130 per barrel: Sources

Government sources state India has ample fuel stocks. Prices to hold unless crude breaches $130/barrel. LPG booking rules tightened to prevent hoarding.

"We expect crude oil prices to be around USD 100 per barrel - Government Source"

New Delhi, March 9

Petrol and diesel prices in India are unlikely to increase, unless and until crude oil prices breach the USD 130 per barrel mark, government sources said on Monday.

The fuel prices are unlikely to increase as India has enough stock, the sources said, adding that as per current projections, crude is expected to remain around USD 100 per barrel.

"We expect crude oil prices to be around USD 100 per barrel," one of the sources said, adding that there was no shortage of petrol and diesel at any pump in the country.

They further said that India has accelerated crude sourcing from routes outside the Strait of Hormuz to lessen any risks of supply disruptions.

Further, the said sources indicated that India, a producer and exporter of Aviation Turbine Fuel (ATF) has enough stock of ATF and there was "no need to panic over aviation fuel supplies."

India, the sources said, is placed in a better position than other countries in overseeing the evolving energy landscape.

Last week, Government sources had said that Australia and Canada have offered to sell gas to India as the country looks for other alternative energy sources amid the escalating West Asia conflict.

The government, they said, is scouting for alternative markets to buy gas, as India currently imports 195 million metric standard cubic metres per day (mmscmd) of gas, of which Qatar supplies 60 million mmscmd.

India is also in talks with major oil producers and traders to buy crude and LPG. Sources said the government is in discussions with the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC).

Separately, sources said today (March 9) in order to stop hoarding and black marketing, the government has increased the minimum waiting period for booking domestic LPG gas cylinder refill to 25 days from the existing 21 days.

"There were instances that people who were earlier booking LPG cylinders in 55 days have started booking cylinders in 15 days," they said.

The government has ordered refineries to boost LPG output and also ordered to prioritise domestic LPG over commercial connections.

"Domestic consumers will always be a priority," the sources reaffirmed, as India scouts for more LPG partners. Countries like Algeria, Australia, Canada, Norway have approached to sell LPG to India, they added.

- ANI

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Reader Comments

P
Priya S
While the assurance is welcome, I hope this isn't just pre-election talk. We've seen prices shoot up suddenly before. The LPG cylinder waiting period increase to 25 days is concerning for large families though.
A
Aman W
Smart move to look for suppliers outside the Strait of Hormuz. Geopolitics is too unstable there. Diversifying to Australia, Canada, Norway makes perfect sense for energy security. Long-term thinking is key.
S
Sarah B
The part about stopping LPG hoarding is crucial. During any crisis, black marketing becomes a real problem. Prioritizing domestic consumers is the right thing to do. Hope the enforcement is strict.
V
Vikram M
$130 per barrel is a very high threshold. Let's hope crude stays around $100. My monthly budget for my car and bike is already stretched thin. Fingers crossed 🤞
K
Karthik V
Good to see India actively engaging with IEA and OPEC. We need to use our position as a massive consumer to negotiate better deals. Also, boosting domestic LPG output is a practical step.

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