Govt Says Petrol, Diesel Prices Will Not Increase Amid Strait of Hormuz Blockade

Central government sources said petrol and diesel prices in India are expected to stay unchanged, despite tensions around the Strait of Hormuz. The assurance came on 7 March, with officials saying India's overall energy stock situation is improving, and crude supplies have been diversified to limit risk from disruptions.

Officials also responded to a political row over cooking gas rates. Congress President Mallikarjun Kharge criticised the Centre after domestic LPG prices reportedly rose by ₹60 and commercial cylinder prices by ₹115. Government sources rejected the opposition's charge, calling the Congress claim "baseless," and clarified the earlier assurance applied only to petrol and diesel.

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According to the officials, New Delhi has increased the share of crude oil sourced from regions outside the Strait of Hormuz. Earlier, about 60% of India's crude imports came from such alternative routes. That share has now climbed to 70%, meaning a 10% rise in crude imports that do not rely on the chokepoint.

The shift follows heightened regional tension after Iran's Islamic Revolutionary Guards Corps announced the closure of the Strait of Hormuz. The move came days after the United States and Israel carried out strikes on 28 February inside Iran, targeting military and naval facilities and killing several senior clerical leaders, including Supreme Leader Ayatollah Ali Khamenei.

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The Strait of Hormuz remains one of the world's most sensitive oil routes, handling around 20% of global petroleum consumption. A BBC report said almost half of India's crude oil imports, along with a large volume of liquefied natural gas and liquefied petroleum gas cargoes, usually travel through this narrow waterway connecting the Gulf to world markets.

India's demand profile underlines that risk. In 2025, India imported close to 25 million tonnes of LNG, with roughly 14 million tonnes moving through the Strait of Hormuz. That volume places India among the largest LNG buyers worldwide, alongside China, Japan and South Korea, making continuity of seaborne traffic especially important for Indian energy security.

Despite earlier worries, officials said internal reviews now show a more comfortable position. They stated that during recent meetings, "we are getting the sense that our energy stocks are getting better," noting that there had been particular concern about LPG availability. Those concerns have eased as supplies and offers from different exporters improved.

Qatar has told Indian authorities that LNG and LPG shipments will resume through the traditional route once navigation stabilises. Government sources added that India currently holds surplus LNG stocks, while several other countries have offered additional cargoes. These factors, officials said, further support the claim that petrol and diesel prices will not rise immediately.

There has also been movement on the regional security front, which matters for tanker traffic. Officials said cargo movement through the Strait of Hormuz has restarted after Iran signalled it would not attack neighbouring states unless strikes originated from their territory. Iranian President Masoud Pezeshkian, in a video message, apologised to Gulf countries for attacks directed at them.

Pezeshkian said the country's interim leadership council had instructed the armed forces not to target neighbours unless attacked from their soil. For India, government sources argued, the combination of resumed cargo flows, diversified crude sourcing, surplus LNG stocks and fresh supply assurances means immediate fuel availability is secure, and petrol and diesel prices are unlikely to increase for now.