{"id":6914,"date":"2026-03-31T14:00:00","date_gmt":"2026-03-31T08:30:00","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=6914"},"modified":"2026-03-31T13:36:09","modified_gmt":"2026-03-31T08:06:09","slug":"3-powerful-reasons-how-india-is-keeping-fuel-prices-in-check-amid-west-asia-conflict","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/3-powerful-reasons-how-india-is-keeping-fuel-prices-in-check-amid-west-asia-conflict\/","title":{"rendered":"3 Powerful Reasons How India Is Keeping Fuel Prices in Check Amid West Asia Conflict"},"content":{"rendered":"\n
\n

Synopsis:<\/strong> Indian government has reduced excise duty by \u20b910 per litre on both petrol and diesel with immediate effect. This decision has been taken in response to the steep and rapid rise in international crude oil prices due to Gulf conflict. This article explains how India is able to keep fuel prices stable and control inflation in the country.<\/em><\/p>\n<\/blockquote>\n\n\n\n

The global oil market is under severe stress due to the escalating US\u2013Iran conflict and disruptions in the Strait of Hormuz, through which nearly a fifth of global oil passes. In a matter of weeks the Crude prices surged from $70<\/strong> per barrel to nearly $122<\/strong>, marking an increase of almost 75%<\/strong>.\u00a0For an import dependent country like India which heavily relies on overseas crude oil a sudden spike in the price poses significant risks. However, unlike other countries where fuel prices have risen by 40%, the Indian government has taken a deliberate policy to shield consumers from this volatility. To achieve this the government has cut excise duties on petrol and diesel by \u20b910 per litre, choosing to absorb the financial burden rather than let inflation affect the consumers.\u00a0\u00a0<\/p>

\"scapia<\/a><\/div>\n\n\n\n

Fuel Pricing in India\u00a0<\/strong><\/h2>\n\n\n\n

In India, fuel price is structured in a way that the government can keep the prices almost the same during the time of crisis.\u00a0<\/p>\n\n\n\n

    \n
  • Base price (crude oil + refining + dealer margin)<\/li>\n\n\n\n
  • Central excise duty<\/li>\n\n\n\n
  • State VAT<\/li>\n<\/ul>\n\n\n\n

    When crude oil prices rise globally the government cuts excise duty to absorb the shock. Fuel taxes are a major source of revenue for the government. Cutting the excise duty means short term revenue loss but the government thinks for the long term economic stability, lower inflation supports growth.\u00a0When the central government cuts excise duty even the state governments are often encouraged to reduce the VAT as well. Excise duty cuts are not permanent, they are carefully timed and used only during high global price hikes, they are reversed when the crude oil prices are stabilised.\u00a0\u00a0<\/p>