As international crude oil prices seesaw at decadal highs, the government on Monday said it is closely monitoring the global situations and would take all appropriate measures to check market volatility and the rise in prices

“The geopolitical situation between Russia and Ukraine has resulted in steep increase in global crude oil and gas prices. Government of India is closely monitoring global energy markets as well as potential energy supply disruptions as a fall-out of the evolving geopolitical situation,” Minister of State for Petroleum & Natural Gas Rameshwar Teli said in a written reply in Rajya Sabha.

In November 2021, in a bid to control inflationary pressures, the government, in consultation with major energy consumers, had released five million barrels from its Strategic Petroleum Reserves (SPRs), he added.

“Government of India is ready to take all appropriate action, as deemed fit, for mitigating market volatility and calming the rise in crude oil prices,” the minister assured the upper house.

The Government reduced the Central Excise duty on petrol and diesel by ₹5 and ₹10 per litre, respectively, effective November 4, 2021. The measure was aimed to give a further fillip to the economy and to boost consumption and keep inflation low, thus helping the poor and middle classes. Many States/ UTs have also reduced the VAT on petrol and diesel subsequently, he said.

On March 11, the price of crude oil (Indian Basket FOB) was $112.59 at an exchange rate of ₹76.44 per US dollar, while the average international price on a FoB basis for natural gas (Saudi Aramco) was $769.11 per tonne.