India Maintains Fuel Prices Stable Despite Its Crude Oil Basket Surging Above $155

According to a report today by The Hindustan Times, citing energy industry executives, despite the Indian crude oil basket price soaring above $155 per barrel, domestic retail fuel prices in India remain stable.

Due to supply disruptions in the Middle East, the Indian crude oil basket price reached $156.29 per barrel on March 19, surpassing Brent crude oil prices in rare cases. During this surge, although Iran had previously announced that Indian oil tankers transporting oil to South Asia would pass through the Strait of Hormuz, the impact of supply disruptions has caused the Indian crude oil basket price to increase by approximately 120%.

According to industry executives cited by The Hindustan Times last Sunday, both state-owned and private refineries are currently absorbing the cost pressures brought by this price surge. They also stated that oil inventories are currently sufficient and there is no short-term supply shortage.

Meanwhile, the Indian Ministry of Petroleum issued a statement saying, “Given the ongoing developments in West Asia, the Indian government continues to take proactive measures to ensure preparedness and response capabilities in key areas.” The statement added, “All refineries are operating at high capacity, and crude oil inventories are adequate. The country also maintains sufficient stocks of gasoline and diesel.”

India is the world’s third-largest crude oil importer, after China and the United States, with over 80% of its oil needs relying on imports. However, The Hindustan Times pointed out that India has a highly diversified supply base, sourcing from “40 oil-rich countries.”

Nevertheless, because the Indian crude oil basket consists of high-sulfur crude from Oman and Dubai and low-sulfur Brent crude, the country remains vulnerable to fluctuations in international oil prices. As of last week’s close, Dubai/Oman benchmark contracts had exceeded $160 per barrel.