Global energy markets have been thrown into turmoil as the US-Iran conflict drags on, raising concerns about supply disruptions after Tehran imposed a blockade on the Strait of Hormuz, a key route through which a fifth of the world's crude oil and gas shipments pass.
Meanwhile, Russia on Friday announced a ban on gasoline exports effective April 1, saying the measure is aimed at prioritising domestic supplies and stabilise fuel prices at home amid global market turbulence due to the ongoing conflict in Middle East, which is about to enter its fifth week.
Similar measures to shield domestic consumers from price fluctuations were announced by India as well. On Friday, the government cut 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.
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 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), which is considered to be a more convenient alternative that is both domestically produced and sourced through diversified supply.
In another major move, the central government on Friday increased commercial LPG allocations to states by 20%, raising the quota to 70% of pre-war levels to meet industrial requirements, including steel and automobiles.
In a letter to state chief secretaries, Oil Secretary Neeraj Mittal directed that the additional supply be prioritised for labour-intensive industries such as steel, automobiles, textiles, dyes, chemicals, and plastics, which support other essential sectors.
FM Sitharaman dismisses lockdown rumours
Union Minister of Finance and Corporate Affairs Nirmala Sitharaman on Friday dismissed the report suggesting that India might impose lockdown-like restrictions if the tensions in Middle East do not ease.
She called these rumours “baseless”, saying that there was no such move being considered by the government.
"I want to reassure people that there shall not be any lockdown. I am surprised that some leaders are saying there will be a lockdown and there will be shortages of fuel. These are baseless. Such remarks coming from those in political domains are worrisome. There will be no lockdown such as we saw during Covid. I want to reassure people that there shall be no such lockdown as we saw in Covid," Sitharaman said.