The ongoing conflict in West Asia has begun to impact India’s fuel market, with oil marketing companies raising the price of premium petrol by up to Rs 2.35 per litre with immediate effect from Friday. This marks the second price increase in a short span, following a Rs60 hike in domestic LPG cylinder prices earlier in March 2026. The latest revision applies only to high-end fuel variants such as BPCL’s Speed, HPCL’s Power fuel, and Indian Oil’s XP95, while regular petrol prices remain unchanged for now.
Indian Oil Corporation clarified in a social media post that it has ensured no increase in regular automotive fuel prices despite rising international crude costs. The company added that the revision is limited to premium petrol, with minimal impact on overall consumption, and reiterated its focus on maintaining stable supply and responsible pricing amid evolving global conditions.
OMCs have also sharply raised bulk diesel prices for industrial users by Rs 22 per litre. In Delhi, bulk diesel prices have increased from Rs 87.67 to Rs 109.59 per litre.
The government also sought to reassure consumers, noting that premium petrol accounts for only around 2-4% of total daily petrol sales in the country. According to Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) at the Ministry of Petroleum and Natural Gas, there has been no increase in normal petrol prices, and the impact of the current hike is therefore limited. The last major nationwide revision in petrol and diesel prices was on March 15, 2024, when rates were cut by Rs2 per litre.
The rise in global oil prices—now trading above $100 per barrel—has been driven by escalating tensions between Israel and Iran. The situation worsened after attacks on critical energy infrastructure and disruptions in cargo movement through the strategically vital Strait of Hormuz. Israel reportedly struck Iran’s South Pars gas complex near Asaluyeh, targeting pipelines and compressors, while Iran retaliated with strikes on energy facilities across Gulf Arab states, including Qatar.
One of the most significant impacts has been on Ras Laffan Industrial City, a key global gas processing and export hub operated by QatarEnergy. Missile attacks on the facility have reduced Qatar’s LNG export capacity by about 17% and caused an estimated loss of $20 billion. The strikes, carried out on March 18–19, 2026, could take up to five years to fully repair, potentially disrupting energy supplies to both Europe and Asia.
Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and CEO of QatarEnergy, condemned the attacks, calling them a threat not just to Qatar but to global energy security and stability. He emphasized that such disruptions affect all nations dependent on reliable and secure energy access.
Meanwhile, concerns are mounting in global markets. Officials in Saudi Arabia have warned that crude oil prices could surge to as high as $180 per barrel if the current disruptions persist beyond April, raising fears of a prolonged energy shock with wider economic implications.