Govt to Review Petrol, Diesel Prices Every 15 Days Amid Middle East Tensions

The Central Board of Indirect Taxes and Customs (CBIC) Chairman, Vivek Chaturvedi, stated in a press briefing later on that the cut will not impact the prices. He stated this because the cut was to compensate the oil marketing companies for their losses.

The sharp increase in crude oil prices has also led to a surge in the prices of petrol, diesel, and aviation turbine fuel. He explained, "The government has adopted a well-planned approach.

A specific additional excise duty (aka windfall tax) and cess have been imposed to prevent the export of diesel and ATF. These rates will be reviewed every 15 days."

The war, which began with the attacks on Tehran on February 28, is now affecting energy infrastructure across West Asia. The situation has been exacerbated by Iran's blockade of the Strait of Hormuz. It should be noted that 20-25 percent of the world's seaborne crude oil and gas passes through this strait.

Due to this war and blockade, the price of global benchmark Brent crude oil skyrocketed. From $68 per barrel before the war began, it surpassed $100 on March 7. By Friday afternoon (3:40 p.m. IST), Brent prices were at $110 per barrel.

The Strait of Hormuz is a vital supply route for India. Estimates indicate that 40 to 50 percent of India's crude oil imports, or 2.2 to 2.8 million barrels per day, come through this route.

India also imports a significant amount of gas from West Asia. India purchases 16 to 17 percent of LNG exported from Qatar and the UAE via Hormuz.