The US-Iran war has rattled global energy markets and raised fears of supply disruptions after Tehran imposed a blockade on the Strait of Hormuz, a critical maritime hub through which a fifth of the world’s oil and gas supplies pass.
The conflict has already pushed oil prices higher, with Brent crude remaining above $100 a barrel, fueling fears that the global economy could face a severe downturn if energy costs continue to soar.
In India, the surge in oil prices has also put pressure on Oil Marketing Companies (OMCs), which have been losing money on the marketing side as the price of crude oil has risen while retail prices of petrol and diesel have remained almost unchanged.
Meanwhile, fears are also growing that quarantine-like restrictions could be imposed on the country if the conflict in the Middle East drags on. The anxiety is evident online, where social media is abuzz with memories of pandemic-era lockdowns. Netizens were found to be searching for keywords like “India lockdown again” and “lockdown news”.
Government steps in to bring relief to OMC
Giving massive relief to OMCs, the Indian government on Friday reduced excise duties on petrol and diesel to ₹3 per liter for petrol and zero for diesel. At the same time, an unexpected tax on diesel exports was established ₹21.5 per litre, according to the ANI news agency.
The ministry also specified that the country has sufficient fuel reserves. “Sufficient supplies of petrol and diesel are available at all gas stations in the country,” it said, reiterating its advice to citizens “not to believe rumours.”
LPG crisis in India
Meanwhile, India has been facing a shortage of liquefied petroleum gas (LPG) in recent weeks due to the war. The center said on Wednesday that supply “will continue to be affected due to the prevailing geopolitical situation”, although no drought has been reported and bottle deliveries are continuing as usual.
The government is also pushing households and commercial users to switch to piped gas (PNG) – a more convenient alternative that is produced domestically and sourced through diversified supplies.
Trump Suspends Attacks on Iran’s Energy Sector
On Friday, President Trump said he would further delay attacks on Iran’s energy infrastructure by 10 days, until April 6, as he continued to say that talks with Iran on a peace deal were going “very well.”
The United States has struck more than 10,000 military targets in Iran since its campaign began last month, CENTCOM commander Admiral Brad Cooper said in a video on X (formerly Twitter) on Wednesday.
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