India to keep gasoline, diesel prices unchanged despite surging crude

India has decided to keep retail prices of gasoline and diesel unchanged for now despite the sharp rise in global crude oil prices, the petroleum ministry said April 29, as ship traffic via the Strait of Hormuz remained constrained amid stalled peace talks between Iran and the US.

The ministry said in a statement that refiners were maintaining high run rates and keeping the retail market well supplied with transport fuels, adding that there was no need for consumers to resort to panic-buying.

"Panic-buying is observed at certain retail outlets due to rumors. It is informed that there are adequate stocks of petrol and diesel available at all petrol pumps in the country. Regular retail prices for petrol and diesel are unchanged, and there is no price increase at PSU (Public Sector Undertaking) OMCs (Oil Marketing Companies) retail outlets," the ministry said.

Crude oil futures settled higher on April 29, as ship transits through the Strait of Hormuz remained restricted and US and Iranian leaders traded barbs amid stalled peace talks. NYMEX June WTI rose $6.95/barrel to $106.88/b, while ICE June Brent climbed $6.77/b to $118.03/b.

"While we are not expecting gasoline and diesel supply challenges in the domestic market, refiners will feel the pressure on refining margins due to high feedstock prices," said Premasish Das, executive director for oil analytics at S&P Global Energy CERA.

Ship traffic through the Strait of Hormuz increased on April 28 but remained well below prewar levels, an April 29 S&P Global Commodities at Sea report said. 16 ships crossed the strait that day, up from a revised 12 the previous day, with average transits in April up at 12.9 ships/day from 7.1 ships/day in March, CAS data showed.

"All refineries are operating at high capacity with adequate crude inventories, while sufficient stocks of petrol and diesel are being maintained," the ministry said.

India's refineries processed 23.5 million metric tons, or 5.5 million barrels/day, of crude in March, down 1.7% from 23.9 million mt in March 2025, the data showed. In February, crude throughput totaled 21.9 million mt, or 5.7 million b/d, according to data from the Petroleum Planning and Analysis Cell.

Alternative fuels

As for LPG, the ministry said supply remains affected by the prevailing geopolitical situation.

"The supply of LPG to domestic households has been prioritized. Total commercial LPG allocation has been increased to about 70% of precrisis levels, including 10% reform-linked allocation," the ministry said, adding that refiners were prioritizing hospitals and educational institutions, as well as sectors such as pharmaceuticals, steel, automobile and agriculture.

The government also encouraged citizens to use alternative fuels, such as piped natural gas, as well as electric or induction cooktops.

"Alternate fuels such as kerosene and coal have been made available to ease pressure on LPG demand. The Ministry of Coal has directed Coal India Ltd. and Singareni Collieries to supply additional coal to states for distribution to small and medium consumers. States have been advised to facilitate new PNG connections for domestic and commercial consumers," the ministry added.

India relies on the Gulf region for about 60% of its LPG consumption. The Middle East conflict has prompted urgent government intervention to secure alternative supplies. Analysts said that if the conflict persists, India may need to depend more on long-haul spot cargoes, potentially raising freight costs and putting pressure on domestic prices.

India consumed 33.2 million mt of LPG in fiscal year 2025-26 (April-March), up 6% from 31.3 million mt in the previous year, according to provisional oil ministry data. Domestic production meets about 40% of the country's LPG demand, with the remainder covered by imports.