Kathmandu, March 8: India Maintains Fuel Price Stability as the government has assured citizens that petrol and diesel prices will not increase, despite rising global oil prices caused by tensions in the Middle East. The move comes after disruptions near the Strait of Hormuz, one of the world’s most important oil transit routes..
According to government sources, Iran has restricted activity around the Strait of Hormuz, a route that normally carries about 20% of the world’s oil supply. India imports a large portion of its crude oil through this corridor. To reduce risk, India has increased crude oil imports by 10% through alternative routes that bypass Hormuz.
Earlier, about 60% of India’s crude oil imports came through routes outside Hormuz, but this has now been increased to around 70%. Officials say the strategy will help ensure stable fuel supply even if disruptions continue in the Gulf region. India imports about 85 to 90% of its crude oil from more than 40 countries, making diversified supply routes essential for energy security.
Despite global market volatility, Indian authorities say the country currently has sufficient crude oil reserves and fuel stocks, allowing it to maintain stable petrol and diesel prices for consumers. However, officials clarified that the assurance applies specifically to petrol and diesel and not necessarily to LPG cooking gas.
Meanwhile, global oil prices have surged due to the ongoing conflict involving Israel, Iran, and the United States. The price of Brent crude oil has climbed to about $92 per barrel, its highest level since April 2024, after increasing nearly 27% in just over a week.
The situation is also being closely monitored in Nepal, which depends entirely on fuel imports from India through the state-owned Nepal Oil Corporation. Officials say there is no immediate shortage of fuel in Nepal, but global price fluctuations could eventually influence domestic prices during future adjustments.
In contrast, Pakistan has already raised petrol and diesel prices by nearly 20% due to rising international crude oil costs.
Experts say that while India’s strategy may help stabilize fuel supply in the short term, prolonged instability in the Middle East could still impact energy markets across South Asia.
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