The US sanction against India’s oil import from Iran will not disrupt domestic fuel supply because Indian refiners have made alternative arrangements, but consumers may feel the pinch as oil marketing companies are under immense pressure to hike petrol and diesel rates post-elections, government and industry officials said.
“Crude oil imports have become costlier. The US sanction has added to the woes. Oil companies are unable to proportionately increase retail prices of petrol and diesel due to political constraints. Ultimately, the consumer will face the heat as oil companies cannot absorb it [higher crude oil rates] indefinitely,” an executive working for a state-run oil marketing company said on condition of anonymity.
Benchmark Brent crude prices on Tuesday surged to $74.70 per barrel, the highest since November 2018, mainly due to the US decision to withdraw waivers to all countries, including India, from importing Iranian crude oil from May 2.
