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India holds petrol diesel prices steady as crude crosses 100 dollars per barrel
India has decided not to increase retail petrol and diesel prices despite global crude oil prices rising above $100 per barrel. The government has reportedly asked state-run oil marketing companies to absorb the cost shock in the near term. The move aims to limit inflationary pressure but could compress marketing margins for fuel retailers if elevated crude prices persist.
By Finblage Editorial Desk
9:10 am
9 March 2026
The Indian government has indicated that petrol and diesel prices will remain unchanged for now even as global crude oil prices have surged above $100 per barrel. Government sources suggested that state-run oil marketing companies will absorb the immediate impact of higher crude costs rather than passing the increase on to consumers.
The policy stance comes after international oil benchmarks jumped sharply amid escalating geopolitical tensions in the Middle East and fears of supply disruptions through the Strait of Hormuz, a key route for global energy shipments. West Texas Intermediate crude rose about 17.4 percent to $106.8 per barrel, while Brent crude climbed roughly 15.6 percent to $107.2 per barrel, marking the first time since 2022 that prices crossed the $100 threshold.
Retail fuel prices in India have remained stable despite the global rally. Petrol in Mumbai was priced around ₹103.49 per litre while diesel stood near ₹90.01 per litre, both unchanged on the day. India typically aligns domestic fuel prices with global crude trends, but during periods of sharp volatility the government has occasionally relied on oil marketing companies to absorb part of the price shock.
For oil marketing companies, a prolonged phase of elevated crude prices without corresponding retail price revisions could pressure marketing margins and reduce profitability. However, these companies had benefited earlier from periods when global crude prices declined while retail fuel prices remained largely unchanged, allowing them to rebuild balance sheets.
From a macroeconomic perspective, keeping fuel prices stable may help contain inflationary pressures in the short term, particularly as fuel costs feed into transport, logistics, and manufacturing expenses. However, higher crude prices still increase India’s import bill and may add pressure on the current account and currency if the price rally persists.
Going forward, market participants will closely monitor the trajectory of global crude prices and geopolitical developments in the Middle East. A sustained period of oil above $100 per barrel could eventually force policy recalibration, either through retail fuel price adjustments or fiscal measures to support oil marketing companies.
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