The US-Iran war has rattled global energy markets, raising concerns about supply disruptions after Tehran imposed a blockade on the Strait of Hormuz, a critical maritime chokepoint through which a fifth of the world's crude oil and gas shipments pass.
The conflict has already pushed crude prices higher, with Brent crude remaining above $100 per barrel, fuelling concerns that the global economy could face a serious setback if energy costs continue to surge.
In India, the spike in crude oil prices has also put pressure on Oil Marketing Companies (OMCs), which have been losing money on the the marketing side as the cost of crude shot up while retail prices of petrol and diesel remained largely unchanged.
Meanwhile, concerns are also rising that lockdown-like restrictions may be imposed in the country if the conflict in the Middle East drags on. The anxiety is evident online, where social media has been abuzz with memories of the pandemic-era lockdown. Netizens have been found searching for keywords like ‘India lockdown again’ and ‘lockdown news’.
Govt steps in to bring relief to OMCs
Giving OMCs a massive relief, the Indian government on Friday slashed excise duties on petrol and diesel, bringing them down to ₹3 per litre for petrol and zero for diesel. At the same time, the windfall tax on diesel exports has been set at ₹21.5 per litre, according to news agency ANI.
The ministry also clarified that the country has adequate fuel supplies. "There are adequate stocks of petrol and diesel available at all Petrol Pumps in the country," it said, reiterating its advice to citizens "not to believe rumours."
LPG crisis in India
Meanwhile, India is grappling with an Liquefied Petroleum Gas (LPG) shortage for the last few weeks due to the war. The Centre notified on Wednesday that supply "continues to be affected due to the prevailing geopolitical situation", though no dry-outs have been reported and cylinder deliveries are continuing as normal.
The government is also pushing households and commercial users to switch to piped natural gas (PNG) – a more convenient alternative that is both domestically produced and sourced through diversified supply.
Trump pauses attacks on Iranian energy sector
On Friday, President Trump said that he will further delay attacks on Iran’s energy infrastructure by 10 days, until April 6, as he continues to claim talks with Iran on a peace deal are going “very well”.
The United States struck more than 10,000 military targets in Iran since launching its campaign last month, CENTCOM Commander Admiral Brad Cooper said in a video post on X (formerly Twitter) on Wednesday.
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