New Delhi | 09 Sep 2026
Brent crude climbed above $100 a barrel on Wednesday as escalating US-Iran attacks threatened shipping and energy supplies near the Strait of Hormuz, increasing pressure on India’s oil-import bill and raising the risk of higher petrol, diesel and LPG costs.
US-Iran conflict drives Brent crude above $100
Brent crude rose about 3% to trade above $100 a barrel for the first time in nearly six weeks, while US West Texas Intermediate crude advanced beyond $95. Prices increased after attacks involving tankers and other vessels intensified concerns about further disruption to Gulf energy shipments.
The Strait of Hormuz remains central to the market’s concerns. The International Energy Agency estimates that about 25% of global seaborne oil trade passed through the waterway in 2025, while alternative export routes have limited capacity.
Indian crude basket rises above $106
India’s Petroleum Planning and Analysis Cell placed the Indian crude basket at $106.26 a barrel on 7 September. Its September average up to that date was $100.75, compared with $90.19 in August and $82.04 in July.
The increase raises costs for Indian refiners and places additional pressure on the country’s import bill. A weaker rupee compounds that burden because crude purchases are largely settled in US dollars. The rupee closed at 95.1050 against the dollar on Wednesday amid rising oil prices and wider market uncertainty.
Will petrol and diesel prices rise in India?
The crude oil surge does not automatically result in an immediate or proportionate increase in retail petrol and diesel prices. Pump prices also depend on international refined-product rates, the rupee-dollar exchange rate, freight, dealer margins, central excise duty and state taxes.
Oil marketing companies and the government may absorb part of a temporary increase through marketing margins or tax adjustments. However, if crude prices remain elevated for an extended period, pressure could build either for higher pump prices, lower taxes or financial support for fuel retailers.
No nationwide increase in Indian petrol or diesel prices had been officially announced in response to Wednesday’s market movement at the time of reporting.
LPG and inflation risks for India
India depends substantially on imported LPG, making domestic cooking-gas costs vulnerable to sustained increases in international prices and disruptions to Gulf shipping. The final retail effect would depend on import costs, government subsidy decisions and the pricing policies of oil companies.
Prolonged high crude prices could also increase transport, aviation, manufacturing and logistics costs, feeding into broader inflation. The scale of the impact will depend on how long the conflict continues, whether tanker traffic faces further restrictions and whether additional global supplies can offset losses from the region.
