Middle East tensions fuel petrol, diesel price hike fears as crude oil prices skyrocket

New Delhi (The Uttam Hindu): International crude oil prices saw a sharp jump on Saturday due to the escalating tensions between the US, Israel, and Iran. Brent crude oil prices reached $91.84 per barrel, while West Texas Intermediate (WTI) prices reached $89.62 per barrel.

With this surge, Brent and WTI prices have registered a rise of 24.55 percent and 32 percent respectively, which has again intensified the fears of rising inflation at the global level. Brent crude futures have crossed the level of $90 per barrel for the first time since April 2024. Meanwhile, the price of WTI crude rose by about 11 percent during the day to reach $89.62 per barrel. Earlier, US President Donald Trump had said that Iran is being damaged 'ahead of schedule and at a level never seen before'. He claimed that Iran now has 'no air force and air defense left' and its air force is almost finished.

On the other hand, Iran's Foreign Minister Abbas Araghchi recently told NBC News that his country has no intention of engaging in any negotiations and is prepared for a ground war. According to experts, when the Russia-Ukraine war began in 2022, the price of Brent crude oil reached $139 per barrel. If tensions escalate in the current situation, prices could rise further. However, a relief for India is that the country currently has sufficient reserves of crude oil, petrol, diesel, and LPG. According to the government, Indian oil companies are meeting the supply shortfall by increasing imports from the Gulf region and other countries.

A senior government official stated that India currently has sufficient energy reserves and is in a comfortable position regarding energy supplies. He added that India has more energy sources available than the supplies currently blocked in the Strait of Hormuz, and that imports from other regions will be increased if needed. According to the official, India has been purchasing crude oil from Russia since 2022. At that time, imports from Russia represented only 0.2 percent of total imports, but now they have increased significantly. He stated that in February, India purchased approximately 20 percent of its total crude oil imports from Russia, amounting to approximately 1.04 million barrels per day (1.04 million barrels per day). The government has directed refineries to maximize LPG production and prioritize domestic supply to avoid a shortage of cooking gas due to the Middle East crisis. As part of this, critical gases like propane and butane have been prioritized for LPG production.