The government has no immediate plans to raise petrol and diesel prices even as international crude oil prices have crossed the $100 per barrel mark, according to a report by PTI quoting government sources.

The report said authorities are closely monitoring global oil markets but have not taken a decision to pass on the higher crude costs to consumers yet. For the time being, state-run fuel retailers are expected to absorb the pressure arising from the surge in international oil prices.

India’s retail fuel prices are largely influenced by global crude trends because the country imports a majority of its oil requirements. Any sustained increase in crude prices typically raises the possibility of a revision in domestic fuel prices.

State-run oil marketing companies such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited usually adjust petrol and diesel prices in line with international costs and exchange rate movements.

What is driving the surge in crude oil prices?

Crude oil prices have climbed sharply amid escalating geopolitical tensions in West Asia, which has heightened concerns about disruptions to global energy supplies.

The conflict has pushed international benchmark prices above $100 a barrel, reviving fears of a broader energy shock that could raise transportation and logistics costs across economies that rely heavily on imported crude.

Has the government taken any steps related to LPG supply?

According to the PTI report, the government has also increased the minimum waiting period for booking a refill of domestic LPG cylinders from 21 days to 25 days.

Officials said the move is aimed at preventing hoarding and avoiding artificial shortages in the market. On average, households consume about seven to eight 14.2-kg LPG cylinders annually and typically do not require a refill within six weeks, they said.

How are LPG issues already affecting businesses?

Even as retail fuel prices remain unchanged, concerns over LPG supply and pricing have begun affecting businesses in some cities.

Bengaluru Hotels Association on Monday, March 9, issued a statement saying hotels and restaurants may struggle to operate from Tuesday morning if commercial cooking gas supplies are not restored.

The association said many establishments depend on daily deliveries of 19-kg commercial LPG cylinders to run their kitchens. Industry representatives said rising LPG prices and supply disruptions have increased operating costs for restaurants, bakeries and small eateries.