New Delhi, Mar 20: Oil marketing companies increased the price of premium petrol variants by up to Rs 2.35 per litre with immediate effect from Friday, amid global energy disruptions linked to the ongoing conflict involving the US, Israel and Iran.

The price of premium fuels -- including BPCL’s Speed, HPCL’s Power and Indian Oil’s XP90 -- was raised by Rs 2.09 to Rs 2.35 per litre. However, there has been no change in the price of regular petrol.

Supply Pressure Amid Global Conflict
The price revision comes as escalating tensions in West Asia continue to impact global oil and gas supplies, with key energy infrastructure coming under attack.

An oil ministry official said India’s refineries are operating at full capacity and no fuel shortages have been reported at retail outlets so far.

Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) at the Ministry of Petroleum and Natural Gas, said oil marketing companies are conducting surprise inspections to prevent irregularities.

“Pressure is there, definitely. But till now, there is no price increase,” Sharma had said a day earlier.

Diversification of Crude Sourcing
Amid the closure of the Strait of Hormuz and recent attacks on Saudi Arabia’s Red Sea port of Yanbu, India has diversified its crude sourcing, with 70% of supplies now coming from regions outside the key transit route.

Sharp Decline in Crude Imports
A report by Systematix Research said India’s crude oil imports dropped sharply in early March due to disruptions in the Middle East.

“India's import volume also nosedived to just 1.9 million barrels in the week ended March 6, compared to 25 million barrels per week in February 2026 and 35 million barrels per week in March 2026,” the report said.

The decline was attributed largely to reduced supplies from key Middle East exporters such as Saudi Arabia, Iraq and the UAE.

“Saudi Arabia dropped to 26 million barrels and 12 million barrels in the first and second week of March, respectively, compared to an average of 42 million and 33 million barrels per week in February 2026,” it said.

Outlook Remains Uncertain
The report flagged continued risks to supply and pricing due to ongoing disruptions in the Gulf region.

“With the recent strikes at energy facilities, including upstream and refining assets across Gulf countries, we might see further rise in prices and disruption of volume,” it said.

It added that energy-import-dependent countries like India could face sustained pressure, while estimating that the trade deficit on crude oil and petroleum products may widen by over $4 billion month-on-month in March 2026.

Industrial Diesel Prices Surge
Separately, Indian Oil Corporation has raised the price of industrial diesel to Rs 109.59 per litre from Rs 87.67 per litre, according to media reports.

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Industrial diesel is supplied directly to factories, construction sites, mining operations and power plants, rather than through retail fuel stations.

Impact on Industry and Logistics
The increase in industrial diesel prices is expected to raise input costs for manufacturing and infrastructure sectors, as well as logistics and transportation expenses.

Higher fuel costs at the industrial level could also influence broader pricing across sectors, depending on how businesses absorb or pass on the additional burden.