Oil Spike Yet to Hit Consumers; Markets Remain Calm

Despite recent volatility in crude oil prices, the domestic market remains relatively calm as there has been no immediate pass-through to consumers. Brent crude briefly spiked near $120 per barrel but has since cooled to around $88–$100 following global interventions such as strategic reserve releases and easing geopolitical concerns. The government has no immediate plans to raise petrol or diesel prices, helping contain inflationary pressures. Fuel supply across the country remains stable, with no shortages of petrol, diesel, or ATF, and pumps functioning normally. India also has around 1–2 months of comfortable supply visibility, ensuring smooth distribution in the near term. Pressure from higher oil prices is currently visible mainly in restaurants and delivery platforms, where logistics costs adjust faster. A policy response may only emerge if crude sustains above $130 per barrel. For now, the government’s stance remains calm and consumer-protective, with expectations that prices will stabilize closer to $100 as geopolitical risks ease.