No immediate petrol, diesel price hike despite sharp crude rally: Govt sources

Even as global crude oil prices have surged to around $120 per barrel amid escalating geopolitical tensions, the government does not see any immediate need to increase petrol and diesel prices, government sources told Business Today. Officials also said that there is no consideration at present to reduce excise duty on petrol and diesel.

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Sources indicated that India remains in a relatively comfortable position in terms of fuel availability and reserves, which is helping cushion the domestic market from the sharp spike in global crude prices.

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"The government is in a comfortable spot in terms of reserves," a source said, adding that there is no immediate concern regarding fuel availability in the country despite the volatility in international oil markets.

Officials pointed out that India had timely pivoted towards alternate crude supply sources when the crisis began, which has helped secure stable inflows of oil and reduce the risk of supply disruptions. The diversification of sourcing has allowed the country to maintain adequate reserves even as the global energy market faces uncertainty.

Government sources further said that the Centre is closely monitoring crude oil prices and developments in the global energy market. However, at this stage, there is no immediate likelihood of a petrol and diesel price hike, nor is there any active discussion on cutting excise duties.

The surge in crude oil prices to around $120 per barrel has raised concerns globally about inflationary pressures and fuel costs. But for now, officials maintain that India’s fuel supply situation remains stable, and there is no immediate need for policy intervention.