Oil and natural gas prices rose sharply this week as the United States and Israel attacked Iran. Retaliatory strikes from Tehran have since wrought havoc across the Middle East — hitting several key locations and fracturing the supply chain. Qatar halted its production of liquefied natural gas on Monday and reports indicate that Indian companies have also ⁠reduced supply to industries in anticipation ‌of tighter availability from the region. However, the biggest concern is the shutdown of the Strait of Hormuz, halting India’s oil supplies from the middle east.

Despite only 25 days of crude oil and refined oil stocks left, government sources have confirmed to ANI that even as authorities are scouting for alternative sources for importing crude oil, LPG and LNG no Immediate plan to raise the prices of petrol and diesel.

Union Minister Hardeep Singh Puri assured on Tuesday that India had “sufficient energy reserves” to deal with the ongoing crisis. He had also met with top officials to review the supply situation for crude oil, LPG, and other petroleum products earlier this week. The Petroleum Ministry assured on Monday evening that New Delhi would take all necessary steps to ensure the ⁠availability of major petroleum products at affordable rates.

What are the current petrol rates in India?

According to daily data shared by Indian Oil Corporation, petrol prices have remained largely unchanged across Indian cities. The petrol rate stood at Rs 94.77 per litre in Delhi and a slightly higher rate of Rs 103.5 per litre for Mumbai. The rate for Kolkata stood at Rs 105.41 per litre while Chennai was slightly lower at Rs 100.8 per litre on Tuesday.

There is currently a significant ‘buffer’ in fuel pricing — with retail prices remaining largely frozen over the past year. During this time the Indian crude oil basket has seen sharp fluctuations from around $60 per barrel in January to the $80 per barrel mark amid the ongoing war. OMCs in India are thus able to absorb the hit (at least for the time being) rather than passing the recent surge onto Indians.

What is the situation for India?

India imports over 85% of its crude oil requirement with around half coming from Middle Eastern countries through the Strait of Hormuz. But the waterway between Iran and ⁠Oman — which ​carries around a fifth of oil consumed globally and large quantities of gas — has seen shipping grind to a near-halt over the past few days. Vessels in the area were struck as Iran hit hit responded to US and ⁠Israeli attacks.

An official told IANS that the domestic oil marketing companies (Indian Oil, Bharat Petroleum and Hindustan Petroleum) have supplies for several weeks and continue to receive energy supplies from several routes. The government has also directed these organisations to avoid export of petroleum products to ensure that the buffer stock is further enhanced.

New Delhi has also diversified its oil sources by increasing imports from Africa, Russia, and the US and building resilience through strategic reserves. According to a Reuters report, India is scouting for alternative sources for importing crude oil, liquefied petroleum gas and liquefied natural gas in case of a longer conflict. US President Donald Trump has gradually increased the possible timeline for strikes — now suggesting the war against Iran could last more than a month.

Multiple sites attacked in Middle East

Qatar halted its production of liquefied natural gas and associated products on Monday after Iranian drones struck energy facilities in the industrial city of Ras Laffan. The company announced less than a day later that would also stop production of some downstream products including urea, polymers, methanol and aluminium. Qatari LNG production accounts for approximately 20% of global supply and it plays a major role in balancing demand in Asian and European markets.

The barrage of strikes has also prompted precautionary shutdowns of oil and gas facilities across the Middle East. Oil giant Saudi Aramco’s 550,000 barrels per day Ras Tanura refinery was shut as a precautionary measure on Monday following a drone strike. Most oil production in Iraqi Kurdistan and several Israeli gas fields have been suspended — throttling exports to Egypt.