BENGALURU: With crude oil prices hitting $117 per barrel, a few members of the State Federation of Petroleum Traders stated that if the situation persists, the oil prices could cross $150.
“The situation is not worrisome as of now, as oil continues to be supplied from Russia. We have new refineries in Odisha and Mangaluru, which will ease pressure. Motorists need not rush to fuel pumps to tank up,” said a senior member of the federation.
The government has stated that oil supplying companies, like Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, are absorbing the burden of price hike.
Karnataka has over 5,000 petrol stations, and 450-odd in Bengaluru alone. “If the West Asia war continues, the supply will definitely be hit, and prices of petrol, diesel and kerosene will go up,” said an official. A petroleum dealer from Bengaluru said any flash news could put bunk staff under pressure as motorists could line up before filling stations.
Prof Ashok Hanjagi, Director, Planning, Monitoring and Evaluation Board, and senior professor, Bangalore University, stated that nearly one-fifth of the world’s petroleum supply moves through the Strait of Hormuz, controlled by Iran, making it vital for energy-importing nations, particularly India. India imports a significant portion of its crude oil from Gulf countries. Much of this oil travels through the Strait of Hormuz.
“If geopolitical tensions were to disrupt this route, global oil transport would face severe constraints. Even the possibility of closure can trigger volatility in international markets, pushing crude oil prices upward due to fears of supply disruption. The escalating tensions between Iran and Israel have renewed global concern about the security of Strait of Hormuz,” said Hanjagi.
He added India stores emergency oil in underground strategic reserves, providing weeks of supply during disruptions, but it could be insufficient to support long-term nationwide consumption. “This situation underscores the importance of diversifying both energy sources and supply routes. India must expand crude procurement from regions such as Africa, Russia, and the Americas while strengthening maritime logistics,” he opined.
19 FLIGHTS CANCELLED FROM KIA AMID W ASIA CONFLICT
Bengaluru: With the war conditions in West Asia showing no signs of relenting, 19 flights were cancelled at Kempegowda International Airport (KIA) Bengaluru on Monday, due to airspace closures. Nine of them were arrivals and 10 were departures. The sectors most affected were Abu Dhabi, Riyadh, Jeddah, Dammam, Dubai, and Doha, sources said. However, Air India Express operated IX6701 to Ra’sal-Khaymah, IndiGo operated 6E77 to Jeddah, and Emirates operated EK569 and EK565 to Dubai.