As tensions between Israel and Iran intensified, the government on Monday said it is closely monitoring the evolving situation and will take all necessary measures to ensure the uninterrupted availability of petroleum products in the country. In a social media post, the Ministry of Petroleum said it had reviewed the supply position of crude oil, LPG and other petroleum products in a meeting with senior officials from the ministry and public sector undertakings (PSUs), reaffirming that adequate stocks are being maintained.
“In view of ongoing geopolitical developments in the Middle East, the Minister of Petroleum & Natural Gas reviewed the supply situation for crude oil, LPG, and other petroleum products with senior officials from the Ministry and PSUs. We are continuously monitoring the evolving situation and all steps will be taken in order to ensure availability and affordability of major petroleum products in the country,” said the ministry, in a social media post.
The attack on Iran has brought renewed focus on the Strait of Hormuz — a key chokepoint for global crude supplies that is controlled by Iran. India consumes about 5.5 million barrels of crude oil per day, of which nearly 1.5–2 million barrels pass through the Strait of Hormuz.
According to brokerage firm Nomura, temporary supply-side shocks could push oil prices even higher if there is a curtailment of Iran’s oil exports, damage to Gulf energy infrastructure, vessel traffic disruptions, or a partial blockade of the Strait of Hormuz. For India, the marketing margins of oil marketing companies (OMCs) could come under pressure and may require government support if elevated crude prices persist.
Nomura’s oil analyst, Bineet Banka, said the marketing margins of OMCs are currently around ₹10 per litre for petrol and ₹4 per litre for diesel, suggesting there is some buffer to absorb crude price shocks before the government needs to consider bearing a fiscal burden to compensate for under-recoveries.
On Monday, crude prices in the international market surged 13% to around $82.37 per barrel — the highest level since January 2025 — following US and Israeli strikes on Iran over the weekend.
However, prices later eased, with Brent crude falling to $79.22 per barrel, while US West Texas Intermediate (WTI) stood at $72.21 per barrel at 19:06 PM IST. On Friday, Brent had closed just below $73 per barrel, compared with about $60 per barrel in early January.