Will Petrol, Diesel Prices Increase Amid West Asia Conflict? What Petroleum Ministry Said

Last Updated:March 17, 2026, 17:15 IST

The Petroleum Ministry announced no plans to hike petrol and diesel prices despite global oil market volatility. LPG prices rose by Rs 60 in March 2026, impacting budgets.

As global oil markets continue to experience sharp volatility amid geopolitical tensions in West Asia, the Petroleum Ministry of Tuesday announced that there is not plan to increase petrol and diesel prices.

Speaking during an inter-ministerial briefing, Sujata Sharma, joint secretary in the Ministry of Petroleum and Natural Gas, said: “The central government does not have plans to increase the petrol and diesel prices."

“Over few months we have begun to diversify for gas – like some have come from US," she further said.

Check Latest Updates On Iran-Israel War Status Today

Despite fluctuations in international oil markets, the Indian government has repeatedly pointed out that petrol and diesel prices are expected to remain stable for now, with oil marketing companies absorbing part of the volatility to avoid sudden price shocks for consumers.

Also Read: Petrol, Diesel Fresh Prices Announced: Check Rates In Major Cities On March 13 Amid West Asia Turmoil

Global crude prices have been highly volatile in recent days due to the ongoing conflict in the Middle East involving Iran, Israel and the United States. The crisis has raised concerns about potential disruptions to oil shipments through the Strait of Hormuz, a critical energy chokepoint through which nearly 20% of global oil supply passes.

Sujata Sharma, however, expressed concerns over the LPG shortage and said: “LPG is concern… but at the same time we have to look for alternative means." She also highlighted the use of induction as one of the options.

Also Read: LPG Prices In India Today, March 17: Know Gas Cylinder Prices In Delhi, Mumbai, Chennai, Other Cities

Household energy costs remain in the spotlight across India following the recent shortage of gas supply in the country. However, as the gas supply for India has improved through the Strait of Hormuz, the LPG cylinder availability is expected to further improve across cities of the country.

Domestic LPG cylinder became costlier recently after the oil marketing companies hiked the rates this month. Meanwhile, CNG rates, critical for millions of vehicle owners in metro cities, have held steady after a modest upward adjustment earlier in 2026.

A major development for Indian households amid the US-Israel-Iran war was the Rs 60 hike in domestic LPG (14.2 kg cylinder) prices that took effect on March 7, 2026. This pushed the Delhi rate from Rs 853 to Rs 913 per cylinder, a roughly 7% increase that has added pressure to monthly budgets, particularly in urban households.

Commercial LPG cylinders (19 kg), used widely in restaurants, dhabas, and small food businesses, also saw a corresponding rise of about Rs 115-Rs 144 this month, with the Delhi rate now standing at Rs 1,884.50.

Households enrolled under the Pradhan Mantri Ujjwala Yojana (PMUY) continue to receive a Rs 300 subsidy per cylinder, credited directly to their bank accounts, which partially offsets the hike for eligible beneficiaries.

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