NEW DELHI: Global benchmark Brent crude fell to a three-week low on Tuesday, amid renewed optimism over reopening of Strait of Hormuz, after senior US officials indicated that a deal with Iran could be possible.Brent was trading below the $80-a-barrel mark (9.15 pm) on Tuesday, its lowest level since July 13, down almost 5% in a day on expectations of easing supply disruptions. Latest data available on PPAC website pegged the price of Indian basket at $88.12 a barrel. Global oil prices have remained volatile, amid renewed US-Iran conflict and disruption to supplies through the Strait of Hormuz, which handles nearly a fifth of the world’s energy trade, as well as Bab el-Mandeb Strait.Govt, however, said it will continue to adopt appropriate fiscal and administrative measures to mitigate the impact of future fuel price volatility, while maintaining fiscal sustainability. Responding to a question in Rajya Sabha, minister of state for finance Pankaj Chaudhary said despite severe disruptions in global energy markets during West Asia conflict, measures taken by govt helped cushion the impact on consumers and the domestic economy.“Brent crude prices peaked at $138.2 per barrel in April 2026, exerting upward pressure on global energy prices and domestic producer prices. However, to protect consumers, govt limited the increase in domestic retail prices of petrol and diesel to a marginal level,” Chaudhary said.He added that the impact on consumer prices remained relatively contained, with average CPI inflation at 3.9% in April-June 2026, below RBI’s inflation target of 4% (+/-2%).The minister also said that reduction in central excise duty on petrol and diesel by Rs 10 per litre in March 2026 protected consumers from elevated international crude prices. It also partly offset the under-recoveries absorbed by state-run oil marketing companies, enabling them to continue supplying fuel without disruption.
