India govt source says Indian Oil has booked some oil cargoes for lifting from Yanbu || no plans to raise retail prices of petrol and diesel as of now

India govt source says Indian Oil has booked some oil cargoes for lifting from Yanbu || no plans to raise retail prices of petrol and diesel as of now

India’s government sources confirmed that Indian Oil Corporation has secured crude oil cargoes for lifting from Saudi Arabia’s Yanbu port, part of broader efforts to diversify supply routes amid the ongoing closure of the Strait of Hormuz. The move aligns with Saudi Arabia’s strategy to reroute oil through the Red Sea to maintain global exports, as Persian Gulf shipments face disruptions due to regional conflicts. Shipbrokers reported heightened demand for vessels transporting crude from Yanbu to Indian refiners, with one tanker, Kalamos, booked at $758,000 per day for a Yanbu cargo.

Despite surging global oil prices—Brent crude surpassed $85 per barrel amid heightened tensions—the government has no immediate plans to increase retail petrol or diesel prices. Officials cited India’s 25-day crude and refined oil reserves, along with fuel companies’ accumulated profits, as buffers against short-term price volatility. Retail fuel prices have remained frozen since April 2022, with state-owned oil firms absorbing losses during price spikes and retaining margins during periods of lower costs.

The Ministry of Petroleum and Natural Gas emphasized continuous monitoring of supply chains and contingency planning, including exploring alternative crude import routes. However, prolonged disruptions at Hormuz could force rerouting via the Cape of Good Hope, increasing transit times and freight costs. Analysts warn that sustained conflicts could elevate oil prices further, complicate LNG procurement, and strain India’s energy security. For now, policymakers aim to shield consumers ahead of critical state elections, prioritizing affordability over immediate price adjustments.