On March 20, top-quality petrol prices in India were raised by as much as ₹2.35 per litre as the global energy insecurities escalated due to the intensifying crisis in West Asia. The increase is on the premium fuel brands like the BPCL Speed, HPCL Power and the XP95 of the IOCL but the consumers do not receive the increased price of the regular petrol.
According to the officials of the Ministry of Petroleum and Natural Gas, the fuel price of India is not regulated and it is set by the oil marketing companies according to the factors of the global market. They stressed that high-quality petrol makes only a minor portion -2-4%- of the total fuel consumption, that is why the impression upon the general population is not so strong.
The price adjustment follows the major shocks that occurred in the global energy supply chains in recent geopolitical tensions between the United States, Israel and Iran. This has been worsened by the fact that, the Gulf region has been attacked on the critical energy infrastructure and fears of limited movement through Strait of Hormuz which is a major route used to transport oil and gas globally.
According to industry sources, dealers of petrol pumps in various parts of the country have already put the changed rates into effect. To illustrate an example, the cost of high quality petrol in certain regions has been increased to more than 105 per litre to above 107 per litre.
Crude oil and natural gas markets around the world have been volatile with Brent crude having extreme volatility. The developments are based on intensifying considerations regarding company security and reliability of supply that the oil companies have adjusted the prices of premium fuels according to the international tendencies without lowering the prices of regular petrol yet.