Global Oil Shock Hits India: Public Pulse And Expert View

Hinzugefügt: 2026-05-16

[00:00:07]And the top story here on Nationwide at 6, days after Prime Minister Narendra Modi's call to reduce petrol and diesel consumption and use public transport, center has hiked petrol and diesel prices by rupees 3 per liter. The price hike comes amid mounting losses being faced by the oil marketing companies in the wake of global energy supply disruption owing to tensions across West Asia. Due to the ongoing conflict, there has been a sharp surge in the crude oil prices from USD 70 a barrel before the conflict to in fact prices surging past USD 120 per barrel, significantly raising India's import bills.

[00:00:54]And now to explain to you how the common man has been suffering, but also would you know in fact how much the you need to pay for a liter of petrol and diesel in Delhi. Petrol is 97.77 per liter. Diesel, there you can see this is the map that we are showing to you. This is the map of India and how much of a price hike has happened. This is Delhi and diesel at 90.67 per liter.

[00:01:22]If we move towards Mumbai, the petrol prices today are at 106.68 per liter and diesel at 93.14.

[00:01:32]In Kolkata towards the east of the country where there's a new government in place, 108.7 is the petrol per liter, diesel at 95.13.

[00:01:43]To Chennai now, 103.67 is the price of petrol per liter, diesel at 95.25 per liter.

[00:01:54]And let's take a look at what people across multiple cities had to say about the increase in fuel prices.

[00:02:04]Delhi residents have woken up to the price rise of fuel today. We are showing you the visuals from Pragati Maidan petrol station, which is considered to be one of the busiest petrol stations in Delhi. We are showing you the visuals of the current petrol prices in the capital that has been that have gone up by rupees 3.14 per liter and are now selling at rupees 97.77 per liter. Diesel has become costlier by rupees 3.11 per liter taking the price to rupees 90.67 per liter. Now, after remaining unchanged for nearly 4 years, this price rise can be seen today that has sparked concern among daily commuters, cab drivers, and daily workers who are saying rising fuel costs will directly affect their monthly expenses.

[00:03:42]In Chennai, the petrol price is now 103.67 a liter. The case of the diesel, it's 95.25 3 rupees hike. And many were expecting this. They were hoping that uh the government would increase the price after the election results since the West Asia war crisis has triggered a disruption in terms of movement of uh oil. 3 rupees per liter hike. How do you look at this?

[00:04:13]Since we don't have a choice, but we need to be careful and sell with it. That's it.

[00:04:19]Do you reduce using your car now or do you Of course we do a lot of In fact, our office also we're discussing to do carpool. In fact, we used to stay in the same complex. We are getting that.

[00:04:28]That's what we need to do. We say as citizens we need to abide by this and go ahead. That's it. Lastly, was this waiting to happen because of the West Asia war and the elections? As everybody knows, that's the main reason. In Hyderabad, if we talk about today's fuel price, it's 110 rupees 88 paisa per liter. And you can see behind me how people are in large number but they are they are coming to the petrol bunks and they are getting their vehicles filled with petrol. Largely the petrol prices are higher in Hyderabad in Telangana as well as in Andhra Pradesh, Vijayawada because of excess VAT collection by the state government.

[00:05:17]I definitely it will impact.

[00:05:19]Our resources are limited. So, our budget is limited. When inflation goes up, rates go up, it definitely affects our total lifestyle budget.

[00:05:31]There's nothing we can do or say about it.

[00:05:33]Live with it.

[00:05:35]So, you say there's no option, but you just live with it.

[00:05:37]>> Yes. Just live with it. All right. No point saying anything.

[00:05:41]>> [laughter] >> But do you do you wish and hope that it does not hike more in the future?

[00:05:47]I think the government should realize that they can't keep hiking everything up because [music] with the hike in petrol prices, everything else is also going to go up.

[00:05:54]Mhm.

[00:05:56]So, the middle class are the people who are going to suffer.

[00:06:00]All right, those were details from the common man of the country that we got to you from across the country, what the sense really is. But, now let's tell you how the government is trying to defend this move. The government sources have in fact told us about the fuel price hike and this is government shielding citizens instead of passing on the full global oil shock. Remember, there were oil prices that were skyrocketing and the oil companies were taking the hit really. The OMCs government's absorbing nearly 1,000 crude losses daily. This is the latest that's coming in from the government and this is the government version. Pump prices held steady despite rising global crude prices. So, the pump prices were headed towards a recovery or some sort of a balance, but there is a price hike that we're talking about in petrol under recovery at 26 per liter and thereafter diesel under recovery at nearly 82 per liter. This is the government version mind you and the government earlier cut excise duty by 8 rupees on petrol and 6 on diesel. You remember the gift for the people that had been announced some months earlier and there hasn't been this kind of a rise since 2022. Government earlier and in fact 2.2 lakh crore fertilizer subsidy shielding farmers. So, the farmers of the country do not need to worry because there is in fact some kind of a comfort cushioning for them as well. 2,200 fertilizer bags still sold to the farmers at 242 rupees. That's the government telling you and of course the government choosing volume reduction over sharp fuel price hike. So, the volume reduction has been there at the parallel in the government is appealing to the people to use this less as much as possible. Full price pass through could need 200-300% fuel price hike. So, clearly as compared to other countries, we are still at a much much better position.

[00:08:00]Sharp price hike would hit bottom 20% harder. So, it is of course the common man that is in fact suffering as of now.

[00:08:09]This is the government sources telling us. Prime Minister's push is to reduce fuel use without crushing the consumer.

[00:08:15]So, as much as possible the government is saying they're trying to help the consumers. They tried to delay it as much as possible. They tried to companies to in fact take the hit, but as of now certainly we have this kind of a situation that's coming in. So, this is the government sources that are telling you about their version, but now we have of course Hardeep Puri who is the energy minister who will be speaking in a bit. And before that, let's tell you why this price rise at this moment was certainly required. This is the crude oil before which was at $69 per barrel and crude oil after the war at 13 to 14 per barrel. That's the latest that we are picking up for you. Oil CEOs daily loss was in fact the companies that we are talking about of oil companies of India 1,600 crore and global oil spike 50% plus. So, this is why the fuel price hike was required. And as I said, the government tried its best but had to push in. The consumers have to suffer finally, but let's hope that this ends very soon. As of now, let's listen in to what the petroleum and energy minister of India, Hardeep Singh Puri, had to say.

[00:09:27]The fiscal situation, if you look at the fact that my oil companies are losing what? 1,000 crores every day.

[00:09:35]That the under recovery is going to be what? 198,000 crores 2 lakh crores nearly.

[00:09:44]The losses are what? 1 lakh crore if you look at the quarter.

[00:09:49]In that context, how long can you keep it like this?

[00:09:54]Where is the oil? It used to be at around $64 or $65.

[00:09:58]I have my statistics here. Gone up to 115 in that basket.

[00:10:03]All right, that was Hardeep Singh Puri, the Union Minister for Energy and Petroleum speaking about the oil price hike. But, a fresh political showdown has erupted over the latest fuel price hike with the opposition launching a sharp attack on the center. Rahul Gandhi has slammed government for fuel price hike and said that people are in fact paying the price for the government's mistake. Not just the Congress, but all opposition leaders are questioning the timing of the price hike alleging that the government deliberately waited for election results before increasing petrol and diesel prices. Meanwhile, the BJP has hit out at the opposition and have called them an opportunist. BJP said that the rise is due to global oil prices and hike India is very minimal comparison to the other countries. Let's listen in to the political reactions that are coming in.

[00:10:58]Mr. Modi has failed in the international relationship.

[00:11:03]He could not manage well. He could not help.

[00:11:06]That is why like COVID, what he said, ring the bell, lift the damp, lift the damp lamp and all he's just giving. It is not possible. How to consume oil in my house? How can I stop it?

[00:11:19]How can I stop vehicle?

[00:11:21]You ask all the central minister to remain he may reduce his uh uh security with two vehicles.

[00:11:28]Okay, fine. Let all others do in the entire country.

[00:11:32]No one should travel outside. How can it be there?

[00:11:35]We are discussing the impact of the increase in the petroleum products price of the petroleum products are discussing. Um and we are assessing the impact on the public.

[00:11:48]Then we will check. Then we will take a decision on that.

[00:11:52]It was happening since you know, last 6 months.

[00:11:57]And the the Middle East you know, the the West Asia crisis is going on. Mhm. The war between the Israel the just in the neighborhood. Mhm. Just in the neighborhood and our petroleum minister Mr. Puri has been already claiming that we are very comfortable. We have no problem. We have our position is stable and we have 6 months crude oil All right, the global oil shock has hit India, but what does this mean not just for India, but entire world? Will there be some kind of a stability or is this a long haul? Joining us live here on NDTV is Dr. Shashwat Kumar, fellow chair on India and emerging Asian economies program and India energy policy at the CSIS. He joins us from Washington, D.C.

[00:13:31]Thank you very much, Dr. Kumar, for joining us. Let me begin by asking you, you know, India did try to delay the price hike as much as possible. Of course, it was an election season domestically here, as well. But how do you see the global situation, especially in South Asia, as well, where due to the West Asia conflict, due to the blockage of the Strait of Hormuz, there remains, you know, uncertainty over the price rise or the energy crisis that is unfolding even as we speak.

[00:13:58]Uh thank you, Aditya, for having me, and uh I mean, you're absolutely right. Uh I was watching your coverage just before coming online, and it's it's it's a it's been a problem for not only South Asia, but for almost the entire for all for almost all countries in Asia, whether it's Japan, Singapore, India, Bangladesh, Sri Lanka. All these countries have been affected by the current conflict that's happening in uh in in Strait of Hormuz, and the biggest challenge to this is uncertainty, as you have pointed out, but duration. Like how long this is going to continue is one big factor, one big uh one big element which no one knows about. And that could also possibly explain explain why different countries are taking measures at a different point in time. I mean, uh uh barring the fact that Indian state Indian states have There were five states which were going undergoing elections, so probable reason why the price hike was delayed, but one possible explanation is also that the fact that countries just don't know how play how prices will fluctuate on any given day.

[00:14:58]I mean, uh currently for India for India's own energy basket, currently it's around 106 to 108 dollars, if you look at the minis- the ministry's website, but it was almost 115 120 a month back.

[00:15:10]So to what extent government can hold withhold the pressure and then pass it on to consumer is a big question for almost all the governments in Asian countries.

[00:15:18]Uh different governments have taken different measures. Uh if you look at Bangladesh, Sri Lanka, there are there have been a lot of demand side conservation measures with university closing. There have been cap on fuel price increases. There have been rationing going on. So, from that point of view, India has not taken any serious measures until now. So, it also speaks for the fact that we were able to withhold the price rise pressure that it was putting on government and different state governments etc. as well. But now with uncertainty prolonging, we don't know to what extent this duration, I mean this conflict is going to continue. And the other the third most important element, the loss of production capacity.

[00:15:54]So, even though we are only seeing supply shock in terms of availability, in terms of what the ships are arriving or or not are arriving in India.

[00:16:03]The other important the thing to look out is the sheer loss of production capacity which will take another two to three years to come online. So, we are looking at a situation which is going to persist for at least remainder of the year or maybe upon some part of the early next year. All right, I want to come to you on how much of an impact will this have on the Indian economy.

[00:16:21]But first for the viewers, the petrol price rise since the start of the war has been in fact impacting several countries all across, especially in the South Asia as well. Let's tell you how much of an impact has it really had.

[00:16:34]This is the petrol price rise since the start of the war. It's been roughly two and a half months or so. If you can, you know, look at this picture. This first graph that you see is the bar for Pakistan and this is 61%.

[00:16:49]US is 46% hike. Canada is at 34% hike.

[00:16:54]If you move a little further, South Africa, part of the BRICS which was happening here in New Delhi, is at 33% hike. 25% to China. Of course, China has also taken a hit that we are talking about. UK at 19%, Japan at 10%, 7% to Indonesia, 6% to Brazil, and only 3.3% to India. Now, many may question why we call it only, but this is the lowest that we are talking about currently all across the globe. Nobody is denying that the common person is taking a hit and certainly the government could have possibly done it a little better or delayed a little more, but right now the question is for how long will this really sustain and will there be any kind of a stability? But Dr. Kumar, coming back to the impact that India has had currently on this entire situation, uh there have been other geopolitical reasons as well. For instance, you know, we've been in talks with US on a trade agreement and US wasn't comfortable with the energy sourcing that we did with Russia. So, we tried to reduce it drastically uh in a few months or few weeks' time. Uh could you see further diversification from India when it comes to energy sourcing or how much of a hit is this in the short term really going to take uh for the Indian economy?

[00:18:15]Yeah, in terms of diversification, India was already diversifying. Uh I think in starting early January, we started noticing the trend that uh instead of relying on Gulf countries, which well, typically constitutes around 50% of India's energy basket uh followed by 30% from Russia, uh rest 20% were being sourced from different countries. And that 20% was already increasing. Uh especially the share of United States was increasing. Not I would say in terms of crude oil, but LPG, yes. And it would be a I would say a stark reversal that US is actually one of the India's largest exporter of LPG since March 2026, which it was not until the war began. So, India has been going to different sources. Uh India has been striking deals in Algeria, in different West African countries. India has been going to uh different countries in Middle East as well. So, and Canada, Brazil, Argentina, so all these countries have been now added to India's import basket. So, that's one way that India has been trying to make sure that there is enough supply availability. Mhm. Uh having said that, I mean, we also see that a reliance on Russian crude has increased.

[00:19:20]So, uh if you look at the March data or even April data, Russia is almost 45 to 47% of India's import energy import basket for especially for the crude oil.

[00:19:30]Uh so, we do see a trend where uh little bit of diversification happening from Middle East.

[00:19:35]>> All right. Uh towards more towards Americas and Africa. And Russia to an extent uh Indian government can continue to uh get uh the waivers, the sanctions waiver from the US, which I believe again India has put in a request for another 1-month extension. So, India is looking at different different geographies to make sure different sources are you know, in a way brought in the India's energy basket.

[00:19:58]>> All right, Dr. Kumar, thank you very much for joining us here on NDTV.

[00:20:01]Diversification is something that India has been doing, but how much of an impact will this have for the common man? We'll have to certainly wait and watch. Let's head to a short break here on NDTV, but when we come back, more news and updates continue on Nationwide at 6.