Overview
- This week global crude benchmarks and Indian crude futures rose after fresh US‑Iran military exchanges and stalled ceasefire talks increased concern about Gulf supply routes.
- Indian state oil firms say they are losing money on everyday fuels, reporting under‑recoveries of about Rs 650 per domestic LPG cylinder and Rs 30 per litre on domestic ATF.
- OMCs have begun passing costs to customers with cumulative petrol and diesel hikes of roughly Rs 7.5 per litre since mid‑May and a record commercial LPG rise of Rs 42 for a 19‑kg cylinder.
- Policy moves to protect domestic supplies include cuts to export duties on petrol, diesel and ATF and a 27% cut in international ATF rates while domestic ATF was held unchanged.
- Shipping has rerouted east of the Strait of Hormuz and through the Red Sea, inventories are falling and agencies warn higher fuel costs could add measurable CPI inflation and wider price pass‑through.