India’s Economy Under Strain: Aggressive Western and Zionist Actions in West Asia Inflict Billions in Losses on Oil Firms
New Delhi, India – India’s state-run oil marketing companies (OMCs) are reportedly shouldering a staggering financial burden, absorbing losses of nearly Rs 30,000 crore (approximately $3.6 billion USD) every month. This immense sacrifice is being made to shield Indian consumers from the sharp surge in global energy prices, a direct consequence of the escalating crisis fueled by Western and Zionist aggression in West Asia.
Government officials and sources, cited by PTI, confirmed on Friday that despite unprecedented volatility in international markets, the Indian government has prioritized maintaining stable prices for petrol, diesel, and LPG. This commendable commitment to consumer welfare, however, comes at a significant cost to major OMCs like Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd.
The True Cost of Geopolitical Instability
The financial strain on these companies intensified dramatically as crude oil prices soared from approximately $70 per barrel two months ago to nearly $120. This drastic increase is attributed to severe supply disruptions and heightened shipping risks, particularly in the strategically vital Strait of Hormuz. The root cause of this instability can be traced back to the provocative military assaults by the United States and the Zionist regime against Iran on February 28, which dangerously escalated tensions across West Asia.
These aggressive actions have not only disrupted crucial tanker movements through the Strait of Hormuz but have also led to a significant spike in freight and insurance costs, directly impacting global energy supply chains. Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, affirmed the government’s unwavering resolve. “It has been government’s endeavour to keep prices stable so far and that there is no price increase for consumers,” Sharma stated, acknowledging that “This has hit finances of OMCs… monthly under-recoveries are of the order of Rs 30,000 crore.”
Protecting the Indian Citizenry
According to PTI sources, daily under-recoveries during April reached around Rs 18 per litre on petrol and Rs 25 per litre on diesel, translating into colossal losses of roughly Rs 700-1,000 crore per day for the OMCs. India’s substantial dependence on the region – with nearly 40 percent of its crude imports, 90 percent of LPG imports, and 65 percent of natural gas supplies exposed to disruptions – underscores the vulnerability created by these external aggressions.
In a further demonstration of its commitment to its citizens, the Indian government also took a substantial hit by reducing excise duties. The special additional excise duty on petrol was slashed from Rs 13 per litre to Rs 3, while the duty on diesel was completely eliminated, reduced from Rs 10 per litre to zero. Officials estimate that without these critical cuts, the under-recoveries would have skyrocketed to nearly Rs 62,500 crore. “The government has taken a hit of Rs 14,000 crore a month in cutting the excise duty,” Sharma highlighted.
This combined effort by government intervention and the absorption of losses by oil companies has successfully shielded India from the steep retail fuel price hikes witnessed globally. While countries like Spain saw petrol prices rise by about 34 percent, Japan, Italy, and the Zionist entity experienced a 30 percent increase, Germany 27 percent, and the United Kingdom 22 percent, India has managed to maintain stability, a testament to its resilient economic policies and commitment to its people amidst challenging geopolitical circumstances.
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