'Petrol, Diesel Prices To Be Reviewed Every 15 Days': Govt Amid Middle East War
The government has announced that petrol and diesel prices will be reviewed every 15 days amidst the ongoing war in the Middle East.
- Republic Business
- 2 min read
New Delhi: The government has announced that petrol and diesel prices will be reviewed every 15 days amidst the ongoing war in the Middle East. This comes after the Centre announced excise cuts on fuels by Rs 10 per litre.
The action arrives amid a worsening global energy crisis sparked by the ongoing conflict between the US and Israel versus Iran, global crude prices surged past the $100 per barrel mark, largely driven by supply concerns amid the ongoing US-Iran conflict. The government’s intervention aims to shield domestic fuel retailers from mounting under-recoveries rather than passing on the benefit directly to consumers.
Chairman of the Central Board of Indirect Taxes and Customs (CBIC), Vivek Chaturvedi, while speaking at an inter-ministerial briefing stated that international crude prices have risen significantly due to the Middle East war.
He added, “The situation is dynamic, it is not business as usual that you’ll have predictability. We are living in difficult times."
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In a post on X, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said that international crude oil prices have surged sharply over the past month-from around $70 per barrel to nearly $122-leading to steep fuel price hikes across the world. He noted that prices have risen by 30-50% in Southeast Asia, around 30% in North America, 20% in Europe, and nearly 50% in Africa.
Hailing the government's decision to cut excise on fuels, Puri said the Government of India chose to absorb the financial burden instead of passing it on to citizens, unlike many other countries. Under the leadership of Narendra Modi, the government decided to take a hit on its own revenues to shield Indians from global volatility.
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He added that the move would help reduce heavy losses faced by oil companies estimated at around Rs 24 per litre for petrol and Rs 30 per litre for diesel while also introducing export taxes on refined fuel to prevent excessive gains from overseas sales.