India’s average crude oil import price rose to nearly $100 a barrel, its highest level in three months, amid renewed volatility in global oil markets, while consumption of key petrolsuch as petrol and diesel also increased, according to government and industry data.
The price of the Indian crude basket was $99.35 a barrel on Wednesday, according to the Petroleum Planning and Analysis Cell (PPAC), and is expected to cross the $100-mark by Friday amid renewed hostilities between the US and Iran, industry experts said. PPAC, the petroleum ministry’s data keeper, publishes data on the Indian basket with a lag. The basket represents an average of the various grades of crude imported by Indian refiners, including Brent, Oman and Dubai.
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Global benchmarks surge as US-Iran conflict escalates
Benchmark Brent crude gained nearly 1% on Friday to close at $96.28 a barrel, while West Texas Intermediate (WTI) crude settled at $91.48, up 18 cents. Both benchmarks gained more than 9% during the week as the US-Iran conflict escalated.
{{/usCountry}}Benchmark Brent crude gained nearly 1% on Friday to close at $96.28 a barrel, while West Texas Intermediate (WTI) crude settled at $91.48, up 18 cents. Both benchmarks gained more than 9% during the week as the US-Iran conflict escalated.
{{/usCountry}}Other factors contributing to the rise in global crude oil and petroleum product prices include a decline in US energy inventories and Ukraine’s attacks on Russian refineries, experts said.
As a result, India’s average petrol benchmark rose to a three-month high of $120.65 a barrel in September 2026 as of Thursday, while the average diesel benchmark rose to a four-month high of $156.44 as of September 3, according to the latest available data.
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Higher crude prices could put fuel rates under pressure
Experts said that if international oil prices continue to rise, state-run oil companies could seek the government’s approval to raise pump prices of petrol and diesel, particularly as domestic consumption is also increasing.
India imports more than 88% of the crude oil it processes. However, retail petrol and diesel prices have largely been insulated from extreme international price volatility, with state-run oil marketing companies (OMCs), which control more than 90% of the country’s 103,023 petrol pumps, keeping pump prices largely unchanged.
Industry executives, who did not want to be named, said public-sector OMCs are facing a double whammy. On one hand, they cannot raise petrol and diesel prices in tandem with their respective international benchmarks as the government tacitly controls retail prices; on the other, demand for both fuels is rising.
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Petrol, diesel consumption rises in August
According to provisional data compiled by PPAC, petrol consumption in India rose 7.9% to 3,824 thousand metric tonnes (TMT) in August 2026 from 3,544 TMT in the same month last year.
Diesel consumption increased 6.4% to 7,001 TMT from 6,577 TMT during the same period.