Govt Mulls More Measures To Curb Fuel Price Volatility Amid West Asia War

New Delhi: Amid West Asia war, the Centre is mulling some more measures to contain the spike of fuel prices, which have impacted the common man in recent times. The government, however, said that despite severe disruptions in global energy markets, the measures taken by the government helped cushion the impact on consumers and the domestic economy.

Minister of State for Finance Pankaj Chaudhary on Tuesday said that the government would continue to adopt appropriate fiscal and administrative measures to mitigate the impact of future fuel price volatility while maintaining fiscal sustainability. “Since the beginning of the West Asia conflict, PSU OMCs have marginally increased the retail prices of petrol and diesel despite sharp increases in international crude oil prices,” he said in a written reply to the Rajya Sabha.

The minister also said that Brent crude oil prices peaked at $138.2 per barrel in April 2026, exerting upward pressure on global energy prices and domestic producer prices. “However, to protect consumers, the government limited the increase in domestic retail prices of petrol and diesel to a marginal level,” he said, adding that despite severe disruptions in global energy markets, the measures taken by the government helped cushion the impact on consumers and the domestic economy.

In March, the government reduced the central excise duty on petrol and diesel by Rs 10 per litre to protect consumers from the impact of elevated international crude oil prices. The excise duty reduction partly offset the under-recoveries being absorbed by public sector oil marketing companies (OMCs), enabling them to continue supplying fuel without disruption.

“The government's strategy is to accommodate such measures within the available budgetary space by closely monitoring revenue and expenditure trends, reprioritising expenditure, and taking appropriate fiscal measures as warranted by evolving economic conditions. This enables the government to respond to unforeseen shocks, such as elevated international crude oil prices, while continuing to meet budgetary commitments, support macroeconomic stability and adhere to the fiscal consolidation path,” Chaudhary said.

The minister further said that ongoing efforts would strengthen domestic revenue mobilisation, adhere to the fiscal consolidation path and enhance energy security through diversification of crude oil import sources. “The expansion of strategic petroleum reserves, promoting alternative and cleaner fuels, and improving energy efficiency will also reduce the economy’s vulnerability to external energy shocks while supporting sustainable and resilient economic growth,” he added.