• Source:JND
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US-Iran Ceasefire: The announcement of a two-week ceasefire between the United States and Iran has brought much-needed relief to the global energy markets, especially for India, which historically relied on West Asia for around 60 per cent of its liquefied petroleum gas (LPG) and nearly 85 per cent of its crude oil.

As the 'war premium' crude begins to fade, the focus in India has shifted from concerns over potential supply disruptions to when the benefits of the ceasefire will reach petrol pumps and household kitchens.

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Petrol And Diesel Prices: Will Fuel Get Cheaper In India?

While global crude oil benchmarks like Brent plummeted nearly 16 per cent to below $93 per barrel after the ceasefire announcement, Indian consumers are unlikely to see an immediate drop in fuel prices.

According to a report by News18, domestic oil marketing companies (OMCs) revise retail rates based on a 15-day rolling average of international prices, keeping petrol at Rs 94.77 per litre and diesel at Rs 87.67 in Delhi for now.

Analysts say that if the ceasefire holds and the Strait of Hormuz remains open, a price cut of Rs 3 to Rs 5 per litre could materialise over the next 7 to 10 days. However, the weakening Indian rupee, hovering around Rs 94.70 against the US dollar, may offset some of the gains from cheaper oil imports.

For now, maintaining current prices is seen as a stabilising measure to avoid inflationary shocks ahead of the upcoming state elections.

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Will Your Next LPG Cylinder Become Cheaper After US-Iran Truce?

The LPG situation in India is significantly more sensitive. On April 1, commercial LPG rates were increased sharply by Rs 195.50, pushing the price of a 19-kg cylinder above Rs 2,078 in the national capital.

While domestic 14.2-kg cylinder prices have remained unchanged, they have come under pressure following steep hikes of 38 per cent to 80 per cent in official selling prices by major suppliers such as Saudi Aramco and Sonatrach.

With the 'ceasefire' now in place, the physical supply of LPG is expected to stabilise. At the peak of tensions, India was forced to prioritise domestic consumption over commercial demand. Now, delayed shipments are expected to resume normal schedules, without costly naval escorts. Meanwhile, the government has doubled the sale of 5-kg 'free-trade' cylinders to one lakh per day to manage shortages.


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