LPG shortage crisis India March 11 LIVE Updates

Profit margins of oil marketing companies such as IOC, BPCL and HPCL may suffer as they are likely to keep retail prices of petrol and diesel unchanged to curb inflationary pressures, S&P Global Ratings said on Wednesday.

Oil prices have risen since the start of the US-Iran war, with crude oil rising above $100 a barrel earlier this week as the Strait of Hormuz, which handles about a fifth of global crude oil and liquefied natural gas (LNG) flows, remains effectively closed. Crude oil prices fell to $88 per barrel on Wednesday.

S&P Global Ratings recently revised its 2026 average price assumption for Brent crude oil prices to between $5 and $65.

The US-based rating agency said India will continue to depend on sea routes to meet its crude oil needs but there is some room for diversification as the country has a history of buying oil from outside Asia such as Russia and South America.

It was stated that purchases from Russia are currently at the level of 1.1 million barrels per day, while purchases from Venezuela restarted last month with 142,000 barrels per day.

-PTI