No fuel price hike for now, government eyes Russian LNG
What's the story
The Indian government has assured that there will be no immediate increase in retail prices of petrol and diesel. This comes despite the ongoing conflict in West Asia, which has disrupted oil supply and shipping routes. According to sources cited by India Today, India's petroleum reserves are increasing "day by day," providing a buffer against potential supply shocks from the crisis.
Energy diversification
India may buy LNG from Russia
To further strengthen its energy security, India is also considering buying liquefied natural gas from Russia if offered. This comes as New Delhi looks for more energy options amid the ongoing crisis in West Asia. At the same time, state-run refiner Indian Oil Corporation has booked several crude oil cargoes from Yanbu, Saudi Arabia's major oil export hub.
Price hike
Domestic cooking gas prices hiked by ₹60 per cylinder
Meanwhile, domestic cooking gas prices have been hiked by ₹60 per cylinder on Saturday. Commercial cylinders also saw a price increase of about ₹115. The hikes are attributed to higher energy costs due to the ongoing conflict in West Asia. After the revision, a 14.2kg non-subsidized LPG cylinder now costs ₹913 in Delhi, according to Indian Oil Corporation's website data.
Market impact
Global energy markets rattled by Iran conflict
The conflict with Iran has started to rattle global energy markets, raising fears of prolonged disruptions to oil and gas supplies. Analysts warn that even if hostilities end soon, damaged infrastructure and disrupted shipping could keep fuel prices high for weeks or months. The crisis has already disrupted major supply routes around the Strait of Hormuz, affecting a large share of global oil and gas flows.
Economic fallout
Widespread impact on fuel supply chains
Global markets are feeling the disruption, with Asian countries reliant on Middle Eastern oil facing rising costs and supply uncertainty. Some refineries have cut operations as governments and companies seek alternative fuel sources amid the energy upheaval. On Tuesday in the US, average petrol prices were up approximately 23 cents per gallon compared to the previous week, and up approximately 41 cents per gallon of diesel over the same period, the BBC reported.