A sharp escalation in the Middle East crisis has triggered a global oil shock, pushing crude prices to record highs and driving up fuel costs worldwide. Union Petroleum Minister Hardeep Singh Puri said international crude prices have surged dramatically over the past month, intensifying pressure on consumers across regions.
Crude oil, he noted in a post on X, has risen from around $70 per barrel to nearly $122 per barrel in just weeks. The spike has already translated into higher petrol and diesel prices globally, with steep increases reported across multiple regions.
Global Fuel Prices Spike, India Shields Consumers
According to the minister, fuel prices have climbed by 30 per cent to 50 per cent in Southeast Asia, around 30% in North America, 20% in Europe, and nearly 50% in African nations.
Puri said the Indian government faced a critical choice: pass on the full burden of rising costs to consumers, as many countries have done, or absorb part of the shock to protect citizens. He emphasised that the government opted for the latter.
He added that under Prime Minister Narendra Modi’s leadership, the government has continued its approach since the onset of the Russia-Ukraine conflict, prioritising consumer protection even if it means placing a strain on public finances.
Revenue Cuts, Export Tax to Offset Oil Company Losses
The minister said oil marketing companies are incurring significant losses, estimated at around Rs 24 per litre on petrol and ₹30 per litre on diesel, due to soaring global prices.
To ease this burden, the government has made substantial cuts to its own revenue. Additionally, it has imposed an export tax on refined fuel products, meaning refineries exporting petrol and diesel will now be required to pay this levy.
These measures aim to stabilise domestic supply and mitigate the impact of volatile international markets.
‘No Lockdown Proposal’, Govt Dismisses Rumours
Addressing concerns over a potential lockdown, Puri dismissed circulating claims as baseless. He clarified that there is no such proposal under consideration at the government level.
He acknowledged that the global situation remains uncertain, with risks to energy supply chains and essential goods. However, he stressed that the government is closely monitoring developments to ensure the uninterrupted availability of fuel and other necessities across the country.
India, he said, has previously navigated global disruptions with resilience and will continue to respond in a timely and coordinated manner.
