As Hormuz blockade drives up Western fuel costs, Indian govt assures supply and stable rates

Minister of Petroleum and Natural Gas Hardeep Singh Puri amid the ongoing Strait of Hormuz crisis assured no increase in fuel prices. As “international crude prices have gone through the roof in the last 1 month from around $70/barrel to around $122/barrel.” And consequently, petrol and diesel prices for consumers have gone up all over the world.

Puri also highlighted that the prices have increased by around 30%-50% in South East Asian countries, 30% in North American countries, 20% in Europe and 50% in African countries. While, India “had two choices- either increase prices drastically for citizens as all other nations have done or bear the brunt on its finances so that Indian citizen is insulated from international volatility.”

He also said that the Modi administration has been committed for the last 4 years since the conflict in Russia and Ukraine began. The government decided to take a hit on its own finances again to safeguard the Indian citizens. The government has taken a huge hit to its tax revenues to ensure very high losses for oil companies, with petrol at approximately Rs24/litre and diesel at Rs30/litre, despite international prices being sky-high. At the same time, export tax has been levied as international prices of petrol and diesel have skyrocketed, and any refinery exporting to foreign nations will have to pay export tax.