<p>New Delhi: The prices of petrol and diesel were unlikely to increase even as prices of crude oil crossed $100 per barrel, indicated Union government officials on Monday.</p><p>The situation in the LPG sector was, however, comparatively critical, with the government increasing the wait time for domestic gas cylinder bookings to 25 days from 21 days to stop hoarding amid a perceived shortage. </p><p>Senior government officials said the price of fuel would not be increased unless a long-drawn situation arose in West Asia.</p><p>Sources indicated that oil-marketing companies (OMCs) would be asked to absorb the losses arising from a global oil price hike due to the escalating situation in Iran, which has closed the Strait of Hormuz, through which a significant number of oil vessels pass.</p>.Oil prices soar; stocks, rupee fall as West Asia conflict escalates.<p>The government has stabilised oil prices in India in the past few years, ensuring that OMCs — most of them government-run — took the hit when oil prices surged, while making up for the losses during slumps. </p><p>“We have the resources, and it is unlikely in the foreseeable future… Unless the war stretches for more than a month or oil prices cross $128 per barrel... The OMCs have made financial gains in the past few years, and are comfortable enough to take a temporary hit,” said the above-mentioned senior official.</p><p>While the G7 has promised to release emergency reserves of crude oil, India is unlikely to contribute. “We have an ‘India First’ policy, and have to look out for our interests,” said the official.</p><p>The G7 has released 4.5 per cent of global reserves, amounting to 400 million barrels, bringing the prices of crude oil down.</p><p>Meanwhile, Union Petroleum Minister Hardeep Puri met International Energy Agency officials on Monday.</p><p><strong>The logistics</strong></p><p>The Strait of Hormuz continues to be a chokepoint, with the daily naval traffic dropping from an average of 138 ships to three.</p><p>Indian officials said they have 25 days of crude oil reserves and 25 days of product reserves. India has over 1 lakh retail fuel outlets, of which over 90,000 are government-run. </p><p>LPG continues to be a worry, with 65 per cent of the total consumption being imported. While the US contributes to 10 per cent of the imports, geographical issues remain. “We are in the world market scouting for LPG,” said the official.</p><p>Canada has shown interest in selling, and conversations are ongoing with the likes of Algeria, Australia, and Norway.</p><p>The ministry on Monday directed refineries to increase production. In urban areas, consumption has hit 6.6-6.7 cylinders annually. </p>
<p>New Delhi: The prices of petrol and diesel were unlikely to increase even as prices of crude oil crossed $100 per barrel, indicated Union government officials on Monday.</p><p>The situation in the LPG sector was, however, comparatively critical, with the government increasing the wait time for domestic gas cylinder bookings to 25 days from 21 days to stop hoarding amid a perceived shortage. </p><p>Senior government officials said the price of fuel would not be increased unless a long-drawn situation arose in West Asia.</p><p>Sources indicated that oil-marketing companies (OMCs) would be asked to absorb the losses arising from a global oil price hike due to the escalating situation in Iran, which has closed the Strait of Hormuz, through which a significant number of oil vessels pass.</p>.Oil prices soar; stocks, rupee fall as West Asia conflict escalates.<p>The government has stabilised oil prices in India in the past few years, ensuring that OMCs — most of them government-run — took the hit when oil prices surged, while making up for the losses during slumps. </p><p>“We have the resources, and it is unlikely in the foreseeable future… Unless the war stretches for more than a month or oil prices cross $128 per barrel... The OMCs have made financial gains in the past few years, and are comfortable enough to take a temporary hit,” said the above-mentioned senior official.</p><p>While the G7 has promised to release emergency reserves of crude oil, India is unlikely to contribute. “We have an ‘India First’ policy, and have to look out for our interests,” said the official.</p><p>The G7 has released 4.5 per cent of global reserves, amounting to 400 million barrels, bringing the prices of crude oil down.</p><p>Meanwhile, Union Petroleum Minister Hardeep Puri met International Energy Agency officials on Monday.</p><p><strong>The logistics</strong></p><p>The Strait of Hormuz continues to be a chokepoint, with the daily naval traffic dropping from an average of 138 ships to three.</p><p>Indian officials said they have 25 days of crude oil reserves and 25 days of product reserves. India has over 1 lakh retail fuel outlets, of which over 90,000 are government-run. </p><p>LPG continues to be a worry, with 65 per cent of the total consumption being imported. While the US contributes to 10 per cent of the imports, geographical issues remain. “We are in the world market scouting for LPG,” said the official.</p><p>Canada has shown interest in selling, and conversations are ongoing with the likes of Algeria, Australia, and Norway.</p><p>The ministry on Monday directed refineries to increase production. In urban areas, consumption has hit 6.6-6.7 cylinders annually. </p>