India Holds 25 Days Of Crude And Refined Oil; No Immediate Petrol-Diesel Price Hike: Sources

New Delhi: Amid rising tensions in the Middle East, India currently has about 25 days of crude oil and refined fuel stocks, said government sources, adding that there are no immediate plan to increase price of petrol and diesel. 

According to sources, as the global oil prices are rising sharply due to geopolitical tensions, the officials are looking for alternative countries to import crude oil, LPG and LNG.

Did the oil price rise?

For the third straight session global oil prices rose on Tuesday. Many are tensed  that supplies could be disrupted from the Middle East, one of the world’s most important oil-producing regions.

Shipping costs for oil and gas have surged, driven by heightened conflict in the Middle East, particularly around the Strait of Hormuz, where tanker insurance premiums have increased by 50 per cent.

What is the price?

Brent crude sharply jumped in early trading on Monday and then eased back. Brent climbed 7.5 per cent to $78.34 a barrel, while US crude surged 7.3 per cent to $71.88 per barrel. Gold rose 1.5 per cent to $5,358 an ounce.

Did OPEC+ agree to increase output?

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+ on Sunday decided in a recent meeting to increase oil production by 206,000 barrels per day in April, amid rising conflict concerns.

What did the government say?

The Government on Monday assured that India’s energy supplies remain secure and well-monitored.

While briefing the media, Petroleum and Natural Gas Minister Hardeep Singh Puri said "India is adequately prepared to handle short-term disruptions arising from the evolving geopolitical situation, according to PIB."

“We are closely tracking the fast-changing developments and will take every necessary measure to maintain both the supply and affordability of key petroleum products across the country,” the oil ministry said in a message posted on X.

India is currently the world’s third-largest crude oil importer, fourth-largest refiner, and fifth-largest exporter of petroleum products. 

The country maintains sufficient stocks of crude oil as well as key fuels such as petrol, diesel and aviation turbine fuel (ATF), ensuring there is no immediate cause for concern.

Why are all eyes on Strait of Hormuz?

Iran's influential military unit the Islamic Revolutionary Guard Corps claimed on Monday that the sea route through the Strait of Hormuz has been closed. A senior Guards officer warned that if any ship tried to proceed through this route it would be targeted. As soon as the statement came out, there was a stir in the international markets and strategic circles. However, the American side has said that maritime traffic is still continuing and the route has not been completely closed.

The Strait of Hormuz connects the Persian Gulf to the Gulf of Oman. Despite its small width, its importance is very great. About one-fifth of the global oil supply passes through this route. The big producing countries of the Gulf send their tankers from here to Asia and Europe. Major importing countries like China, Japan, India and South Korea are largely dependent on this route. If movement stops here then a rise in prices is considered almost certain.