Pump Prices Hold Steady In India Despite Record $156 Crude Spike

Despite a staggering 120% jump in the daily average import cost of crude oil since the onset of the West Asia war, India’s fuel retailers are holding the line on pump prices. On Sunday, March 22, 2026, government officials and industry executives confirmed that while the “Indian basket” of crude has surged to a record $156.29 per barrel, petrol and diesel prices for the general public remain unchanged.

The situation marks a historic anomaly in energy markets, as the Indian basket—typically priced a few dollars below the global Brent benchmark—has now surpassed it by nearly $48, with Brent standing at $108.65.

1. The Surge: From $71 to $156

The escalation of the conflict, which began on February 28, has triggered a vertical climb in procurement costs for Indian refiners:

• Pre-War (Feb 27): $71.17 per barrel.
• Mid-March (Mar 16): Crossed the $140 mark.
• Current Peak (Mar 19): Settled at a record $156.29.
• Historical Context: This surpasses the previous all-time peak of $142 recorded in July 2008.

2. Retail Resilience: OMCs Absorb the Shock

Both public and private oil marketing companies (OMCs) are currently absorbing massive under-recoveries to prevent domestic inflation.

• Pump Prices: Regular petrol and diesel prices remain frozen. While state-run OMCs recently nudged premium petrol up by ₹2 per litre, private retailers like Jio-BP have maintained status quo across all grades.
• Inventory Strength: The Petroleum Ministry assured the public that refineries are operating at high capacity with “adequate crude inventories.”
• No Dry-Outs: Unlike neighboring Pakistan and Sri Lanka, India has reported zero fuel dry-outs at retail outlets.

3. The LPG Challenge: Prioritizing Households

While petrol and diesel supplies are stable, the government admitted that Liquefied Petroleum Gas (LPG) remains a “concern” due to the ongoing conflict’s impact on Qatari infrastructure.

• Supply Gap: Approximately 47% of India’s LPG imports were affected by recent attacks on Qatar’s Ras Laffan industrial city.
• New Allocations: To manage the crunch, the government increased the commercial LPG allocation to states to 50% on March 21, prioritizing hospitals, community kitchens, and the food processing industry.
• Diversified Sourcing: India is aggressively pivoting its sourcing. On Sunday, the Pyxis Pioneer arrived from the USA with 16,714 MT of LPG, following a redirected Russian crude tanker, Aqua Titan, which docked in Mangaluru on Saturday.

4. Government Advisory

The Ministry of Petroleum has urged the public to avoid panic buying, stating that supplies are being maintained regularly through a “diversified crude procurement strategy” involving 40 different countries.

Energy Market Snapshot (March 22, 2026)