fuel crisis – Artifex.News https://artifex.news Stay Connected. Stay Informed. Sun, 10 May 2026 10:21:00 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://artifex.news/wp-content/uploads/2026/05/cropped-cropped-app-logo-32x32.png fuel crisis – Artifex.News https://artifex.news 32 32 ₹1,600-1,700 crore a day, ₹1 lakh crore in 10 weeks: Cost of insulating India from global energy shock https://artifex.news/article70962012-ece/ Sun, 10 May 2026 10:21:00 +0000 https://artifex.news/article70962012-ece/ Read More “₹1,600-1,700 crore a day, ₹1 lakh crore in 10 weeks: Cost of insulating India from global energy shock” »

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Image used for representational purposes. File
| Photo Credit: K.V.S. Giri

About ₹1,600-1,700 crore per day, over ₹1 lakh crore in 10 weeks. That’s the cost that state-owned oil firms incur for insulating Indian consumers from the global energy shock but ever-widening losses are now raising questions on how long they can continue bearing the cost without financially capitulating.

Since the war broke out in West Asia 10 weeks ago, state-owned oil marketing companies (OMCs) have ensured uninterrupted supplies of petrol, diesel and cooking gas LPG at rates that are way below cost, unlike many global energy systems that imposed rationing or passed through steep price increases.

This has resulted in the three OMCs — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — running record high under-recoveries (the difference between cost and retail selling price), two sources with direct knowledge of the matter said.

The combined under-recovery on petrol, diesel and cooking gas LPG is ₹1,600 crore to ₹1,700 crore daily, they said, adding total under-recovery for the 10 weeks is now well over ₹1 lakh crore.

Despite a 50% surge in input crude oil prices, petrol and diesel continue to be priced at a two-year-old rate of ₹94.77 a litre and ₹87.67 per litre respectively. Domestic cooking gas LPG prices were raised in March by ₹60 per cylinder, but they are still way lower than the actual cost.

The revenues that OMCs earn from selling fuel are the only source that is used by them to buy crude oil (raw material), build infrastructure to process it into fuel and lay a network to take the product to consumers.

For 10 weeks, the OMCs have managed to insulate the Indian market but now the cost is visible, sources said adding they may have to borrow more to meet the working capital requirement (buying of crude oil).

“If elevated crude prices persist for an extended period, OMCs may require higher working capital borrowings and calibrated reprioritisation of some capex timelines,” a source said. “However, strategic investments in refining expansion, energy security infrastructure, ethanol blending, biofuels, and transition fuels continue to remain national priorities and are expected to proceed with Government support..

Another source said the OMCs are operating under significant financial pressure. “Financially strong OMCs are critical for India’s energy security, supply continuity, infrastructure expansion, and economic stability. Sustained stress on OMC balance sheets could affect future investments in refining, pipelines, strategic reserves, clean fuels, and energy transition initiatives.”.

To raise petrol and diesel prices is now a political call that the government will have to take, a separate source said. “There is no doubt that a fuel price hike has become inevitable, but the timing and quantum of increase have to be decided by the government..

While countries from Japan to the United Kingdom have raised petrol and diesel prices by up to 30% since the start of the West Asia conflict, fuel prices in India continue at two-year-old levels.

This despite the war disrupting India’s import of 40% of crude oil (raw material for making petrol and diesel), 90% cooking gas LPG and 65% natural gas (used to generate electricity, make fertiliser, turned into CNG and piped to household kitchens for cooking).

While the three OMCs have worked overtime to keep the supply lines running even when demand spiked due to panic buying, the government intervention included excise duty reductions to absorb part of the fuel cost burden. The special additional excise duty on petrol was cut to ₹3 per litre from ₹13, while excise duty on diesel was reduced to zero from ₹10 per litre.

The government has taken a hit of ₹14,000 crore a month in cutting the excise duty, sources said.



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IMF, World Bank, IEA urge countries to stop hoarding energy supplies, imposing export controls https://artifex.news/article70859291-ece/ Mon, 13 Apr 2026 22:01:00 +0000 https://artifex.news/article70859291-ece/ Read More “IMF, World Bank, IEA urge countries to stop hoarding energy supplies, imposing export controls” »

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International Energy Agency (IEA) Executive Director Fatih Birol. File
| Photo Credit: Reuters

The International Monetary Fund, World Bank and International Energy Agency on Monday (April 13, 2026) urged countries ‌to avoid hoarding energy supplies and imposing export controls that could worsen what they ​called the biggest shock ever to the global energy market.

IEA chief Fatih Birol told ⁠reporters after a meeting with IMF and World Bank leaders that several countries were holding onto stocks and imposing export restrictions, and appealed to all countries to let energy stocks flow to the markets. He did not name the ‌countries.



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U.S. military says it will start blockade of all ships going to and from Iran on Monday https://artifex.news/article70855422-ece/ Sun, 12 Apr 2026 21:44:00 +0000 https://artifex.news/article70855422-ece/ Read More “U.S. military says it will start blockade of all ships going to and from Iran on Monday” »

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A vessel at the Strait of Hormuz, off the coast of Oman’s Musandam province, on April 12, 2026.
| Photo Credit: Reuters

U.S. Central Command said ​it will begin implementing ‌a blockade of all ​maritime traffic entering ⁠and exiting Iranian ports on April 13 at ‌10 a.m. ET (1400 GMT), after President ‌Donald Trump said ‌the ⁠U.S. Navy would ⁠start blockading the Strait of Hormuz.

“The blockade will ​be enforced ‌impartially against vessels of all nations entering or departing Iranian ports ‌and coastal areas, including ​all Iranian ports on the Arabian ⁠Gulf and Gulf of Oman. CENTCOM forces will ‌not impede freedom of navigation for vessels transiting the Strait of Hormuz to and from non-Iranian ‌ports,” CENTCOM wrote in ​a statement on social media.



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West Asia crisis: Soaring fuel prices drive German far-right calls for a turn back to Russia amid Iran-Israel war https://artifex.news/article70805911-ece/ Tue, 31 Mar 2026 06:52:00 +0000 https://artifex.news/article70805911-ece/ Read More “West Asia crisis: Soaring fuel prices drive German far-right calls for a turn back to Russia amid Iran-Israel war” »

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Germany’s far-right Alternative for Germany ​party has used surging energy prices to revive its longstanding call for Berlin to turn once more to Russia for cheap energy after ‌scoring some of its best results in two state elections this month.

German petrol prices have jumped ​by more than 15% since the U.S. and Israel began their war on Iran a month ago, ⁠and the AfD’s argument won a ready hearing this month among voters in Baden-Wuerttemberg, a centre of the German car industry.

“That was the defining issue,” said Markus Frohnmaier, the AfD’s leading candidate in Baden-Wuerttemberg, pointing to energy prices around twice as high as those in China ‌or the United States.

“This election campaign was all about the economy, the economy, the economy.”

AfD now Germany’s second party

The AfD consolidated its position as Germany’s second party by winning around 20% of the vote in both ‌Baden-Wuerttemberg and in neighbouring Rhineland-Palatinate, where it recorded its best ever result in a western state.

“The situation in the ‌German ⁠economy at the moment is dire,” Mr. Frohnmaier said. “It is essential for Germany’s energy sovereignty, as well as for ⁠affordable electricity … that Germany begins to import Russian gas and oil again.”

Russia had supplied over a third of Germany’s crude oil imports and more than half of its natural gas needs, until Moscow’s invasion of Ukraine in 2022 and the abrupt shutdown of the Nord Stream pipeline left Berlin scrambling ​to find alternative suppliers, which now include Norway, the ‌Netherlands and Belgium.

With the exception of indirect imports of small quantities of liquefied natural gas, it has eliminated Russian oil and gas from its energy mix, statistics office data shows.

For two decades, under chancellors Gerhard Schroeder and Angela Merkel, Germany’s economic model had been built around access to cheap Russian energy. The shock helped push Germany into a two-year recession ‌from which it has only just begun to emerge.

Combined with steadily mounting job losses at manufacturers squeezed by higher ​energy costs and growing competition from China, this has helped to create fertile ground for the AfD’s promotion of Russian energy. “This argument is much more closely linked to people’s everyday lives than abstract ⁠geopolitical statements,” said Johannes Hillje, a political scientist and specialist in the AfD.

For many in Germany’s main parties, the calls for a return to Russian energy are part of a wider drive, by a party long accused of being sympathetic to Moscow, to ‌undermine Russia’s isolation.

“The AfD is deliberately promoting Russian narratives in Germany,” said Roderich Kiesewetter, a member of parliament’s foreign affairs committee from Chancellor Friedrich Merz’s conservative Christian Democrats (CDU). “It would be disastrous for European security and the trust of our partners if imports of Russian oil and gas were to increase.”

Germany’s AfD helping to end Russia’s isolation

But he acknowledged that, even among his fellow Christian Democrats and their Social Democrat coalition partners, some were making similar calls for the restoration of trade and economic ties with Russia.

The AfD, which last month won an injunction preventing Germany’s domestic intelligence agency from classifying it as “extremist” for the moment, is often ‌characterised as far-right, though it disputes the label. Shunned by other parties, it has made strong gains among younger and working-class voters.

Mr. Frohnmaier said it was ​not for German politicians to worry about the possible boost to Moscow’s war effort from buying Russian gas.

“We weren’t elected to represent the national interests of Ukraine,” he said.

The AfD initially made strong inroads ⁠among voters thanks to its opposition to a sharp rise in immigration over recent years, but has increasingly expanded its focus to ⁠include economic issues.

“People vote for the political party they believe is capable of solving the current problems,” Mr. Frohnmaier said, dismissing the argument that Germany had already secured alternative sources of oil and gas.

In eastern Germany, where the AfD ‌has a strong chance of winning power in Saxony-Anhalt in one of three state elections being held in September, the argument is likely to have even more force.

“There is a widespread view in the German public that cutting ties with ​Russia was a mistake,” said Michael Kretschmer, CDU premier of the eastern state of Saxony. “The further east you go, the stronger this feeling becomes.”

Published – March 31, 2026 12:14 pm IST



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