Crude Oil Prices Surge in India Amid Middle East Escalation

New Delhi, March 2 (TNA) Crude oil prices in India spiked sharply on Monday, driven by fears of supply disruptions from the US-Israel strikes on Iran, with Brent crude surging to $79-$80 per barrel and WTI at $72.52. Global benchmarks jumped 8% amid tensions threatening the Strait of Hormuz, a chokepoint for 2.6 million barrels per day of India’s imports. Domestic MCX crude futures mirrored the rally, trading higher at around ₹6,092 per barrel.

Petrol and diesel prices remained unchanged across major cities despite the global crude rally, reflecting daily revisions under the dynamic pricing mechanism. In Delhi, petrol stood at ₹94.77 per litre and diesel at similar levels, with no hikes in most states like Maharashtra (₹104.22 petrol) and Uttar Pradesh (₹94.81). Minor upticks appeared in Madhya Pradesh (₹107.41 petrol, +₹0.10) and Himachal Pradesh (+₹5.96), but most markets saw zero change.

The oil surge exacerbated stock market declines, with refiners like Indian Oil eyeing cheaper Russian crude to offset costs, while aviation and auto sectors braced for higher input expenses. India, importing 85% of its oil needs, faces inflation risks if prices sustain above $80, potentially prompting OMCs to pass on costs soon. OPEC+ production boosts offered limited relief amid geopolitical premiums.