Global oil prices plunge $26 per barrel within hours as Strait of Hormuz reopens, raising big questions over petrol and diesel rates in India
New Delhi: In a dramatic turn of events shaking global energy markets, crude oil prices plummeted nearly 20 percent within hours following the sudden ceasefire announcement between the United States and Iran. The price of a barrel dropped sharply from $117.63 to $91.05, marking a steep fall of nearly $26 in a single day, one of the biggest declines recorded since the COVID-19 pandemic.
The sharp correction comes amid easing geopolitical tensions after the ceasefire reportedly brokered with support from key players, including China and Pakistan. The development has brought global oil markets to a temporary halt, with traders reacting swiftly to the sudden supply stability.
Strait of Hormuz Reopens, Supply Restored
A major trigger behind the crash is Iran’s decision to ease restrictions on the Strait of Hormuz, one of the world’s most critical oil supply routes. With shipping operations resuming fully, fears of supply disruption have significantly reduced, leading to a rapid correction in crude prices.
Before tensions escalated earlier this year, crude prices were hovering around $65 per barrel, and analysts are now closely watching whether prices could fall further toward that level in the coming weeks.
Talks Likely in Islamabad
Diplomatic momentum is expected to continue, with reports indicating that discussions based on Iran’s 10-point proposal are likely to take place in Islamabad on April 10. The proposal outlines key conditions aimed at ensuring long-term stability and de-escalation in the region.
Will Petrol and Diesel Prices Fall in India?
Despite the sharp drop in global crude prices, a reduction in petrol and diesel prices in India appears unlikely in the immediate term. The Indian government had earlier reduced excise duty when crude crossed the $100 mark, helping cushion the impact on consumers.
Private players such as Nayara Energy and Shell had increased fuel prices earlier, while state-run oil marketing companies maintained relative stability in regular petrol and diesel rates.
Excise Duty Adjustment Likely
Experts suggest that instead of passing on the benefit to consumers, the government may consider increasing excise duty again to balance revenue losses. This could mean that retail fuel prices may remain unchanged, despite the global oil price crash.
For the past two years, the government has focused on maintaining price stability rather than frequent revisions, a trend that may continue even amid falling crude prices.
Market Relief, But Consumer Uncertainty Remains
While the ceasefire has brought immediate relief to global markets and reduced fears of an energy crisis, Indian consumers may not see a direct benefit anytime soon. The situation remains fluid, with future price movements dependent on geopolitical stability and policy decisions.
