Indian Retailers Raise Fuel Prices a Fourth Time in 11 Days to Rein in Losses

State-owned fuel ‌retailers in ‌India increased diesel prices by 2.71 rupees ($0.0283) per litre and ‌petrol ⁠by 2.61 rupees on ⁠Monday, for the fourth time in the past 11 days, reported Reuters. However, India's three state-run oil marketing companies (OMCs) -- Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited -- are still staring at massive under-recoveries despite the recent increase in petrol and diesel prices.

Prices have been raised by over ₹7 per litre through multiple hikes. However, according to financial market estimates, this may not be enough.

To fully recover past losses and bridge the gap between input costs and retail selling prices, fuel prices in India would theoretically need to rise by another ₹28 to ₹33 per litre. That means even after the latest hikes, OMCs may still require at least ₹20 more per litre to fully offset the losses accumulated over the past few months, reported NDTV.

₹300 Limit on Petrol for 2-wheelers: In Chhattisgarh’s Gariaband, Collector moves to Stop Panic Buying

The Collector of Chhattisgarh’s Gariaband district passed an official order to all fuel stations in the district, directing them not to provide petrol worth more than ₹300 to two-wheelers and ₹1,000 to four-wheelers till the fuel stock situation is brought under control, the Indian Express reported, adding that the collector’s office said limit for four-wheelers would be revoked. 

The newspaper said several districts of Chhattisgarh have seen panic buying of petrol and diesel recently amid what the state government said were rumours of fuel shortage. On Thursday, the state capital, Raipur, saw long queues and chaos, but the district is not currently implementing any restrictions on the purchase of fuel, the report said quoting Raipur’s Collector Gaurav Singh. 

“Restricts have been imposed in view of the prevailing situation and apprehensions of hoarding and disorder caused by unnecessary purchases by consumers. Pumps must not sell petrol or diesel in drums, jerry cans or bottles. Strict action will be taken against those violating the directive,” The Print quoted the order. 

Fuel stations must prioritise supply to vehicles engaged in essential services, including ambulances, it added.

US Strikes Iranian Site; Iran Retaliates With ‘Strike on US Airbase’ Triggering Oil Prices to Jump Over 3% 

The United States carried out new strikes on an Iranian military site alleging it was posing a threat to US forces and maritime traffic in the Strait of Hormuz. Iranian media said US forces struck near the Bandar Abbas port, causing no damage or casualties, Al Jazeera reported. 

Iran’s Islamic Revolutionary Guard Corps (IRGC) said it launched an attack on an “American airbase” in retaliation for the Bandar Abbas strike, and warned of “more decisive” action should US “aggression” continue, according to state media. Kuwait’s military said it confronted “hostile” missiles and drones, without providing information on where the attack came from.

The Israeli military has issued forced displacement orders for the entire population of southern Lebanon. Aid agencies warn of an “absolute catastrophe” in southern Lebanon amid Israel’s attacks.

Reuters reported that oil prices jumped more than 3% on Thursday after Iran’s Revolutionary Guards said they targeted a US airbase in response ‌to a US attack near Bandar Abbas airport.

No Oil Flow Till Mid 2027 Through Hormuz, Says Chief of UAE State Firm ADNOC

Meanwhile, even if West Asia conflicts ends now, full oil flows through the Strait of Hormuz will not return before the first or second quarter of ‌2027, the head of the United Arab Emirates' state oil firm ADNOC said, Reuters reported, adding that Iran has established de facto control over the waterway, a chokepoint for about a ⁠fifth of the world's oil supply. The resulting surge in energy prices has pushed inflation higher and fanned fears of an economic downturn.

"Even if this conflict ends tomorrow, it will take at least four months to get back to 80% of pre-conflict flows, and full flows will not return before the first or even second quarter of 2027," ADNOC CEO Sultan Al Jaber said during a Atlantic Council event on Wednesday.

Iran is consolidating its control over the strait with checkpoints, vetting and sometimes fees, Reuters reported. Tehran began attacking vessels in the ‌strait to ⁠impose a de facto blockade after the U.S.-Israeli assault against Iran began on February 28, the report said.

Coal for Cooking During LPG Crisis Raises Questions Over Health Risks

The Bihar government decided to distribute coal for domestic cooking in the wake of the LPG crisis caused by the US and Israel’s war on Iran in West Asia and the consequent blockade of Strait of Hormuz imposed by Iran and the US. Bihar’s “unusual” policy decision has raised questions about its practicality, Mongabay India reported. 

Experts have called this decision a reversal of the government’s efforts to promote clean energy. Experts say the Bihar government should issue strict guidelines on the use of coal for domestic cooking to minimise pollution and health risks.

Signals off, LNG Tanker Discretely  Exits Hormuz for India for First Time Since War Began

A liquefied natural gas (LNG) tanker carrying a shipment for India exited the Strait of Hormuz, the first for the country from the Persian Gulf since the Iran war began months ago as the region’s exporters discreetly supply buyers, the Hindu Businessline reported. 

Adnoc Logistics & Services’s Al Hamra tanker was spotted heading to western India, according to ship-tracking data compiled by Bloomberg. The tanker loaded at Abu Dhabi National Oil Co.’s Das Island export during the period it wasn’t sending a signal, according to Kpler. Satellite images show tankers have been docking at Das Island, even though no tankers are broadcasting their positions near the plant. Adnoc has also exported two other shipments in the dark — one to Japan and the other to China.

Hormuz has remained virtually shut as the US and Iran both enforcing a de facto blockade on a waterway that normally handles about a fifth of global LNG supply. Most of the transits take place with transponders turned off to avoid detection, the outlet reported. 

Last year, India received more than half of its LNG from Qatar and the UAE, but those flows have essentially halted over the last few months, ship data shows. The decline in deliveries has forced India to procure more shipments from the expensive spot market, as well as curb supplies to some industries.

Oil Markets Nearing 'Red Zone' as Holiday Season Nears, Warns IEA Chief

International Energy Agency (IEA) chief Dr Fatih Birol warned that oil markets could enter a “red zone” by July and August as “stocks dwindle before the summer travel season” amid a shortage of fresh oil exports from West Asia, according to the Guardian. Birol said “it was open to IEA members to release more strategic oil reserves, as they had previously in March”, adding that “as much as 80% of IEA’s collective reserves have not been released”. 

He warned that while stocks were eroding, no new oil was coming from West Asia and the demand was increasing, mainly caused by the travel season. He saw no prospect of oil production recovering fully for at least a year, including in the United Arab Emirates, and said that some countries heavily dependent on oil revenues to fund their budget. He predicted that countries would pay a premium for supplies from secure sources and for renewable energy.

Meanwhile, Iran’s supreme leader, Mojtaba Khamenei, reaffirmed that Iran would not allow its stockpiles of highly enriched uranium to be exported to a third country, such as Russia. 

China Coal Mine Explosion Kills 82 People, Coking Coal Prices Shoot Up  

Eighty-two people have died in a gas explosion at a coal mine ‌in ⁠China’s Shanxi province. It has been described as China’s deadliest mining accident since at least 2009. Reuters reported that China’s coking coal futures prices rose by nearly 8% after the blast which “sparked a wave of stringent safety checks across the region that tightened the supply outlook”. 

According to Bloomberg two thermal coal mines in Qinyuan (joint annual capacity at 1.8m tons) stopped operations, while other “major hubs” have launched inspections. The outlet added that this “could affect China’s much larger supplies of thermal coal, used in power generation”. The newspaper added that China's power consumption is only going to rise as it is heading into summer. “And top exporter Indonesia has imposed constraints on supply,” Bloomberg added.