Will LPG, petrol, diesel prices rise after the US initiated blockade of Strait of Hormuz? Here’s what we know

Following the failure of talks between Iran and the United States in Islamabad, there are speculations that the prices of LPG and other fuels may increase. Here's what we know about the situation

Talks between Iran and the United States failed in Pakistan’s Islamabad, following which the US President ordered a blockade of the Strait of Hormuz. If the tension escalates, it will have a significant impact on countries like India. But this has led to a big question for countries like India, “Will the price of Liquefied Petroleum Gas (LPG), petrol, and diesel surge in the near future?

Pressure has been mounting on the Indian government as the country imports crude oil and gas from other countries, especially Gulf countries. While India was able to bring some of its LPG tankers through the Strait of Hormuz since the war began, if the US blockade intensifies, it can affect the prices, thus increasing pressure on the central government.

Prices of commercial LPG cylinders, petrol and diesel keep surging

The price of commercial cylinders has been on the rise since the war broke out in West Asia. Effective April 1, commercial LPG cylinder prices were raised by Rs 195 to Rs 218, due to which the price of an LPG cylinder in Delhi reached Rs 2078.50. Meanwhile, the price of a small 5 kg LPG cylinder also increased by Rs 51, while the price of a domestic cylinder increased by Rs 60 in Delhi from March 7. However, there has been no increase in LPG cylinder prices after that.

Before the war began, crude oil prices had reached close to $70 per barrel, while now they stand at close to $100 a barrel. The increase in crude oil prices has increased pressure on oil marketing companies. Recently, the government provided relief by reducing the excise duty on petrol and diesel by Rs 10 each. Nayara and Shell India have already increased the prices of petrol and diesel. Now, it remains to be seen how long the government and oil companies can bear this increased burden.

US-Iran peace talks fail in Islamabad

The first round of peace talks was held in Pakistan’s Islamabad for 21 hours but remained inconclusive. US Vice President JD Vance, leading the Washington delegation, said it is “bad news for Iran” and that his team is leaving after putting forward a “final and best offer”.

“The simple fact is that we need to see an affirmative commitment that they will not seek a nuclear weapon and they will not seek the tools that would enable them to quickly achieve a nuclear weapon,” Vance said, adding that it is the “core goal of the President (Donald Trump)”, and that is what they have tried to achieve through negotiations.

Following the failure of the first round, the two countries are expected to hold a second round of talks on April 16. Reports indicate that both countries have agreed to hold talks, but there is no clarity over the specifics of the meeting.