The Indian oil basket reached $156.29 per barrel on March 19, surpassing Brent crude in a rare occurrence. This spike has been driven by geopolitical tensions affecting supply flows, despite assurances from Iran that Indian-bound oil tankers would be allowed to pass through the Strait of Hormuz. Overall, the Indian basket has risen by around 120% amid the crisis.
Industry executives indicate that refiners—both state-owned and private—are currently absorbing the increase in crude costs, preventing any immediate impact on retail fuel prices. They also noted that India holds sufficient oil inventories, reducing the risk of a near-term supply shortage.
The oil ministry stated that the government is closely monitoring the evolving situation and taking proactive measures to ensure energy security. It confirmed that refineries are operating at high capacity and that adequate stocks of crude oil, petrol, and diesel are available across the country.
As the world’s third-largest crude importer, India depends on imports for more than 80% of its oil demand. While the country benefits from a diversified supplier base spanning around 40 nations, it remains exposed to global price fluctuations. Its oil basket is linked to benchmarks such as Oman, Dubai, and Brent crude, all of which have seen sharp increases recently, with Dubai/Oman crude crossing $160 per barrel and Brent trading above $110.
Despite the surge in global prices, India’s ability to manage supply and absorb costs has so far helped maintain stability in domestic fuel markets, though continued volatility in global oil markets remains a key risk.
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