Global benchmark Brent crude fell to a three-week low on Tuesday, slipping below the $80-a-barrel mark on renewed optimism over reopening the Strait of Hormuz, according to Business Today. Brent was trading below $80 (9.15 pm) on Tuesday, its lowest level since July 13, down almost 5% in a day on expectations of easing supply disruptions. The latest data available on the PPAC website pegged the price of the Indian basket at $88.12 a barrel.
Price action: Brent breaks below $80
Business Today reported that 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 the Bab el-Mandeb Strait. The slide to a three-week low followed signals from senior US officials that a deal with Iran could be possible, reviving expectations of a reopening of the Strait of Hormuz.
| Benchmark | Price (Tuesday, 9.15 pm) | Move |
|---|---|---|
| Brent crude (international benchmark) | Below $80/barrel | Three-week low, down ~5% in a day |
| Indian basket (PPAC data) | $88.12/barrel | — |
Government vows to mitigate volatility
Responding to a question in the Rajya Sabha, minister of state for finance Pankaj Chaudhary said the government will continue to adopt appropriate fiscal and administrative measures to mitigate the impact of future fuel price volatility, while maintaining fiscal sustainability. According to Business Today, Chaudhary noted that despite severe disruptions in global energy markets during the West Asia conflict, measures taken by the government 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.
Consumer prices, excise duty and OMC under-recoveries
In a response to the Rajya Sabha, Chaudhary said the impact on consumer prices remained relatively contained, with average CPI inflation at 3.9% in April-June 2026, below the RBI's inflation target of 4% (+/-2%). He also said the reduction in central excise duty on petrol and diesel by Rs 10 per litre in March 2026 protected consumers from elevated international crude prices.
The excise cut also partly offset the under-recoveries absorbed by state-run oil marketing companies, enabling them to continue supplying fuel without disruption, the minister said. Key government measures cited in the report include:
- Continued adoption of appropriate fiscal and administrative measures to cushion future fuel price volatility
- Limiting the increase in domestic retail prices of petrol and diesel to a marginal level despite Brent peaking at $138.2/barrel
- Reducing central excise duty on petrol and diesel by Rs 10 per litre in March 2026
- Partly offsetting under-recoveries borne by state-run oil marketing companies
Tuesday's trading left Brent at its lowest level since July 13, according to Business Today, with the benchmark down almost 5% on the day. The move reflects a rapid swing in sentiment as expectations of easing supply disruptions gained ground, even as the Indian basket stood at $88.12 a barrel in PPAC data. The government, for its part, has signalled it will sustain the fiscal and administrative buffers that, in Chaudhary's words, limited the rise in domestic petrol and diesel prices to a marginal level even when Brent peaked at $138.2 per barrel in April 2026. With supply routes through the Strait of Hormuz and Bab el-Mandeb still facing disruption risks, Business Today reported that New Delhi will continue to deploy appropriate fiscal and administrative measures to mitigate future fuel price volatility while maintaining fiscal sustainability.
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