InvestorQ : Why haven’t petrol and diesel prices risen in India despite the US’ sanction on Iran oil imports?
Abigail Ghoshal made post

Why haven’t petrol and diesel prices risen in India despite the US’ sanction on Iran oil imports?

Answer
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Anusha Savla answered.
1 year ago


This is a very important and valid question. The reason for this is that US has imposed sanction on import of oil from Iran earlier this month. India, net oil importer consumes a significant portion of its oil from Iran.

India’s oil import dependence, or the percentage of crude oil consumed that is imported, was 83.7% in 2018-19, according to news reports. The same was 80.6% in 2015-16, which reflects the increase in dependence on imports over just three years.

With significantly lower supply, prices are bound to go up, as they have by rising close to 10%.

The reason petrol and diesel prices haven’t risen in India yet is because of the Lok Sabha elections. The government wants to avoid taking any step that will harm its chances in the elections and hence, it is not passing on higher crude prices to end users- us.

Once voting ends, on May 19, one can expect a hike in petrol and diesel prices.