Prices of Bharat Petroleum Corporation Limited (BPCL) Speed, Hindustan Petroleum Corporation Limited (HPCL) Power Fuel and Indian Oil XP90 increased by Rs 2.09 to Rs 2.35 per litre.
However, there are currently no changes to the price of regular gasoline.
This comes amid an escalating war in the Middle East as countries target key energy infrastructure, affecting oil and gas supplies around the world.
Also read: A war in West Asia with no winners, except perhaps Russia’s oil machine
An official from the Ministry of Petroleum, in a recent official briefing, stated that Indian refineries are running at full capacity and no drought has been reported in any fuel output so far.
Sujata Sharma, Joint Secretary (Petroleum Marketing and Refining), Ministry of Petroleum and Natural Gas, said oil marketing companies (OMCs) are carrying out surprise inspections at all outlets to prevent unethical practices.
The petrol price hike comes a day after Sharma said India is facing pressures in terms of crude oil supply but the government has not yet increased the price.
“There is definitely pressure, but so far there has been no price increase,” he said.
Amid the Strait of Hormuz closure and recent attacks on Saudi Arabia’s Red Sea port of Yanbu, India has diversified its crude supply, sourcing 70% of its crude from the area outside the key corridor.
Also read: Asia buys most US oil in years as Iran war blocks Middle East flows
India’s oil status
According to a report by Systematix Research, India’s crude oil imports saw a sharp decline in early March amid disruptions in the Middle East, highlighting the impact of the ongoing regional crisis on energy supplies.
“India’s import volume also plummeted to just 1.9 million barrels in the week ending March 6 from 25 million barrels per week in Feb ’26 and 35 million barrels per week in March ’26,” the report said.
The research report attributed the sharp drop in imports to weakening crude oil supplies from the Middle East, which has been affected by current tensions and disruptions in the region.
“The drop is largely attributed to lower volume from the Middle East,” he said, noting that key suppliers such as Saudi Arabia, Iraq and the United Arab Emirates experienced significant drops in export volumes.
“Saudi Arabia fell to 26 million barrels and 12 million barrels in the first and second week of March from an average of 42 and 33 million barrels per week in February ’26,” according to the report.
Also read: Government says LPG situation not ‘self-sustaining’ as imports hit by Middle East crisis
The report flagged broader supply disruptions across the Gulf region and flagged the possibility of further price increases and supply chain disruption. “With the recent strike at energy facilities, including upstream and refining assets in the Gulf countries, we could see further price growth and volume disruption,” he said.
The report warned that the current situation could continue to affect countries that depend on energy imports. “We could see further price increases and volume disruptions, which could have a significant impact on energy-deficient countries like India,” he said.
The Systematix report maintained a cautious outlook on the sector. “Due to uncertainty over the escalation of war in West Asia, we maintain a cautious view on the sector,” the report said.
The sharp decline in crude oil imports, along with rising prices, is expected to hit the Indian economy on the macroeconomic front, widening India’s trade deficit. “The estimated trade deficit in crude oil and petroleum products is estimated to increase by more than $4 billion monthly by March 26,” the report said.
As the Iran-US-Israel war continues to impact crude oil and LNG supplies, the report indicates that India may face sustained pressure on its energy imports and costs in the near term.
