Government to Review Fuel Prices Biweekly Amid Global Oil Surge

In light of escalating global oil prices driven by ongoing conflicts in the Middle East, the Indian government has decided to implement biweekly reviews of petrol and diesel prices. This strategic move aims to address the significant revenue losses incurred from recent duty reductions. While the government has reduced excise duties, consumers will not see a decrease in retail prices. Officials have highlighted the impact of the conflict on energy supply chains and assured the public of sufficient domestic reserves. The government's approach reflects a careful balancing act between managing economic pressures and ensuring energy availability.

By Narendra Chaudhary Mar 27, 2026, 18:51 IST

Fuel Price Review Announcement

New Delhi: The government has announced that it will conduct a biweekly review of petrol and diesel prices. This decision is part of a carefully monitored response to the ongoing conflict in the Middle East, which has significantly impacted global crude oil prices. Vivek Chaturvedi, Chairman of the Central Board of Indirect Taxes and Customs (CBIC), shared this information on Friday.

During an inter-ministerial briefing, Chaturvedi noted that the war in the Middle East has led to a substantial increase in international crude oil prices. The government's response has been strategic and well-considered.

Impact of Duty Reductions
Chaturvedi pointed out the disruptions in global shipping routes and supply chains, stating, 'The situation is dynamic. It is not like normal operations where you can make predictions in advance. We are going through challenging times.'

The CBIC Chairman revealed that the reduction in duties on petrol and diesel has resulted in a revenue loss of approximately ₹7,000 crores.

Assessment of Changing Trends
Chaturvedi explained that the government will evaluate the evolving situation every fortnight, considering trends in imports and domestic consumption before making any further decisions. He emphasized that even within a limited timeframe, the department must account for the volume of imported goods.

Government Measures
Under domestic measures, the revised excise duty on petrol has been reduced from ₹21.90 per liter to ₹11.90 per liter. Based on rough estimates, the revenue impact of recent proposals is projected to be around ₹1,500 crores over a two-week period.

Significance of the Statement
These remarks came just hours after the government announced a ₹10 per liter reduction in excise duty on petrol and diesel. This move aims to shield public sector oil marketing companies from increasing losses (under-recovery) amid rising global crude oil prices. Companies affected include Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation.

No Benefit for Consumers
However, consumers will not benefit from this reduction, as retail pump prices will remain unchanged.

Highlighting Supply Chain Issues
Officials also emphasized the conflict's impact on the energy supply chain. Chaturvedi stated, 'The war is affecting the stocks of crude oil, LPG, and LNG.'

Government Assurance on Supply
Additionally, the government has sought to reassure the public regarding domestic availability and supply. Sujata Sharma, Joint Secretary of the Ministry of Petroleum and Natural Gas, confirmed that India has sufficient crude oil reserves. Furthermore, domestic LPG production has increased by nearly 40%.

She also explained how the government has prioritized domestic consumers in its supply decisions, stating, 'The Indian government has decided to prioritize domestic consumers. Therefore, commercial supply was halted. Subsequently, after careful consideration, we resumed 20% supply, then 10% based on the ease of doing business, and today we have increased it to 70%.'