The international crude prices have risen significantly due to the ongoing Middle East war, but petrol and diesel prices have not been increased in the country till now, however, they will be reviewed every fortnight as part of a calibrated and closely monitored response, said Vivek Chaturvedi, Chairman of the Central Board of Indirect Taxes and Customs (CBIC), on Friday. Addressing media at the inter-ministerial briefing, Chaturvedi said, “The situation is dynamic, it is not business as usual that you’ll have predictability. We are living in difficult times.”&nbsp;&nbsp;“The total revenue foregone on the petrol and diesel duty slash is Rs 7,000 crore in a fortnight,” he added.&nbsp;The Union government will assess the evolving situation on a fortnightly basis, including trends in imports and domestic consumption, before taking any decisions.&nbsp;&nbsp;Earlier, the government announced a Rs 10 per litre cut in excise duty on petrol and diesel, with the aim of cushioning public sector oil marketing companies Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation from mounting under-recoveries amid soaring global crude prices. The duty reduction will not be passed on to consumers, and retail pump prices will remain unchanged.Officials also flagged the impact of the conflict with disruptions in global shipping routes and supply chains.&nbsp;<h2>‘Stocks of crude, LPG, and LNG being affected because of war’</h2>&nbsp;“Stocks of crude, LPG, and LNG are being affected because of the war,” Chaturvedi said.&nbsp;&nbsp;Reassuring domestic availability and supply prioritisation, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said India has sufficient crude inventories, while domestic LPG production has increased by nearly 40%.&nbsp;“The Indian government decided to prioritise domestic consumers and hence stopped the commercial supply. Then, taking calibrated decisions, we resumed 20% supply, then 10% based on ease of doing business, then 50%, and today we have made it 70%,” she said.&nbsp;&nbsp;<h2>‘Fuel prices have gone up worldwide, remain unchanged in India’&nbsp;</h2>&nbsp;“Fuel prices have gone up worldwide, but petrol and diesel prices in India remain unchanged,” Sharma added.She also assured that there is enough stock of gas and fuel and urged the citizens not to believe in rumours.&nbsp;“We have sufficient crude oil. LPG, LNG, and PNG supply are all ensured. But after some rumours, we have seen long queues in front of petrol pumps in many areas,” Sharma said.&nbsp;&nbsp;<h2>‘There is no situation like lockdown, all rumours’</h2>&nbsp;&nbsp;Refuting the rumours of a lockdown being imposed, Sujata Sharma said, “There is no situation like lockdown. No decision has been taken, and it is not even under consideration. It’s all rumours.”&nbsp;Ministry of External Affairs spokesperson Randhir Jaiswal said India’s conversation with global partners has been continuing. “The EAM is presently visiting France, attending G 7. On the sidelines, he held several meetings. Leaders discussed issues in West Asia,” he added.&nbsp;Aseem R Mahajan, Additional Secretary, Gulf, said, “We lost one of our citizens in Abu Dhabi yesterday during an attack. One was injured and discharged. Total, so far, 7 citizens have been lost and one is missing.”&nbsp;

Refuting the rumours of a lockdown being imposed, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said there is no situation like a lockdown, and no such decision has been taken. No such move is under consideration, she clarified.

The international crude prices have risen significantly due to the ongoing Middle East war, but petrol and diesel prices have not been increased in the country till now, however, they will be reviewed every fortnight as part of a calibrated and closely monitored response, said Vivek Chaturvedi, Chairman of the Central Board of Indirect Taxes and Customs (CBIC), on Friday. Addressing media at the inter-ministerial briefing, Chaturvedi said, “The situation is dynamic, it is not business as usual that you’ll have predictability. We are living in difficult times.” “The total revenue foregone on the petrol and diesel duty slash is Rs 7,000 crore in a fortnight,” he added. The Union government will assess the evolving situation on a fortnightly basis, including trends in imports and domestic consumption, before taking any decisions. Earlier, the government announced a Rs 10 per litre cut in excise duty on petrol and diesel, with the aim of cushioning public sector oil marketing companies Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation from mounting under-recoveries amid soaring global crude prices. The duty reduction will not be passed on to consumers, and retail pump prices will remain unchanged. Officials also flagged the impact of the conflict with disruptions in global shipping routes and supply chains. ‘Stocks of crude, LPG, and LNG being affected because of war’ “Stocks of crude, LPG, and LNG are being affected because of the war,” Chaturvedi said. Reassuring domestic availability and supply prioritisation, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said India has sufficient crude inventories, while domestic LPG production has increased by nearly 40%. “The Indian government decided to prioritise domestic consumers and hence stopped the commercial supply. Then, taking calibrated decisions, we resumed 20% supply, then 10% based on ease of doing business, then 50%, and today we have made it 70%,” she said. ‘Fuel prices have gone up worldwide, remain unchanged in India’ “Fuel prices have gone up worldwide, but petrol and diesel prices in India remain unchanged,” Sharma added. She also assured that there is enough stock of gas and fuel and urged the citizens not to believe in rumours. “We have sufficient crude oil. LPG, LNG, and PNG supply are all ensured. But after some rumours, we have seen long queues in front of petrol pumps in many areas,” Sharma said. ‘There is no situation like lockdown, all rumours’ Refuting the rumours of a lockdown being imposed, Sujata Sharma said, “There is no situation like lockdown. No decision has been taken, and it is not even under consideration. It’s all rumours.” Ministry of External Affairs spokesperson Randhir Jaiswal said India’s conversation with global partners has been continuing. “The EAM is presently visiting France, attending G 7. On the sidelines, he held several meetings. Leaders discussed issues in West Asia,” he added. Aseem R Mahajan, Additional Secretary, Gulf, said, “We lost one of our citizens in Abu Dhabi yesterday during an attack. One was injured and discharged. Total, so far, 7 citizens have been lost and one is missing.”

Refuting the rumours of a lockdown being imposed, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said there is no situation like a lockdown, and no such decision has been taken. No such move is under consideration, she clarified.

‘Situation dynamic’: Petrol, diesel prices to be reviewed every 15 days, says govt

Rising global energy prices amid the ongoing West Asia conflict are likely to put significant pressure on India's fiscal position in FY27, according to a report by ICRA. However, the report still claims that available buffers are likely to help manage the impact of the crisis. It noted that geopolitical tensions largely drive recent increases in energy prices, have added volatility to global markets and could require adjustments in fiscal policy. "Even if the situation stabilises, energy prices are expected to remain higher than earlier budgeted assumptions, which may require fiscal adjustments," the report said. The rating agency said that higher crude oil and gas prices may increase subsidy burdens, particularly for fertilisers and LPG. "Higher crude oil and natural gas prices may lead to an increase in subsidy requirements, particularly for fertilisers and liquefied petroleum gas (LPG)," it added.<h3>Fiscal buffers</h3>It also flagged possible pressure on government revenues, indicating that elevated prices could lead to softer excise collections and lower corporate tax inflows. Over supply-side concerns, ICRA stated that “global supply disruptions and logistical challenges have contributed to the increase in energy prices, which could impact various sectors, including petroleum and fertilisers.”&nbsp;However, ICRA highlighted the availability of fiscal buffers despite these challenges. "Multiple buffers are available to manage the impact," ICRA said. It also cited mechanisms that include the Economic Stabilisation Fund (ESF), expenditure savings, and flexibility through supplementary demand for grants.&nbsp;It also stated that savings in expenditure seen in recent years, along with the possible carry-forward of higher small savings collections, could create extra fiscal room. At the same time, lower redemptions and tweaks in market borrowing may provide additional support.&nbsp;On the fiscal outlook, ICRA said these buffers could help limit deviations from targets. "These buffers may help contain any significant deviation from the fiscal deficit target of 4.5 per cent of GDP for FY2026-27," the report stated and cautioned that outcomes depend on how long elevated energy prices continue.&nbsp;Also read: <a href="https://www.wionews.com/india-news/lpg-vessel-apollo-ocean-docks-in-karnataka-india-assures-stable-energy-supply-1774533177605">LPG vessel 'Apollo Ocean' docks in Karnataka, India assures stable energy supply</a>

ICRA flagged possible pressure on government revenues, indicating that elevated prices could lead to softer excise collections and lower corporate tax inflows. Despite these challenges, it highlighted the availability of fiscal buffers. 

Rising global energy prices amid the ongoing West Asia conflict are likely to put significant pressure on India's fiscal position in FY27, according to a report by ICRA. However, the report still claims that available buffers are likely to help manage the impact of the crisis. It noted that geopolitical tensions largely drive recent increases in energy prices, have added volatility to global markets and could require adjustments in fiscal policy. "Even if the situation stabilises, energy prices are expected to remain higher than earlier budgeted assumptions, which may require fiscal adjustments," the report said. The rating agency said that higher crude oil and gas prices may increase subsidy burdens, particularly for fertilisers and LPG. "Higher crude oil and natural gas prices may lead to an increase in subsidy requirements, particularly for fertilisers and liquefied petroleum gas (LPG)," it added. Fiscal buffers It also flagged possible pressure on government revenues, indicating that elevated prices could lead to softer excise collections and lower corporate tax inflows. Over supply-side concerns, ICRA stated that “global supply disruptions and logistical challenges have contributed to the increase in energy prices, which could impact various sectors, including petroleum and fertilisers.” However, ICRA highlighted the availability of fiscal buffers despite these challenges. "Multiple buffers are available to manage the impact," ICRA said. It also cited mechanisms that include the Economic Stabilisation Fund (ESF), expenditure savings, and flexibility through supplementary demand for grants. It also stated that savings in expenditure seen in recent years, along with the possible carry-forward of higher small savings collections, could create extra fiscal room. At the same time, lower redemptions and tweaks in market borrowing may provide additional support. On the fiscal outlook, ICRA said these buffers could help limit deviations from targets. "These buffers may help contain any significant deviation from the fiscal deficit target of 4.5 per cent of GDP for FY2026-27," the report stated and cautioned that outcomes depend on how long elevated energy prices continue. Also read: LPG vessel 'Apollo Ocean' docks in Karnataka, India assures stable energy supply

ICRA flagged possible pressure on government revenues, indicating that elevated prices could lead to softer excise collections and lower corporate tax inflows. Despite these challenges, it highlighted the availability of fiscal buffers.&nbsp;

Rising energy prices could put strain on India’s FY27 fiscal position, says ICRA

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‘Situation dynamic’: Petrol, diesel prices to be reviewed every 15 days, says govt

Rising energy prices could put strain on India’s FY27 fiscal position, says ICRA