Petrol-Diesel Price Hike: Amidst the war in Iran and ongoing tension in West Asia, the prices of petrol and diesel in India have been increased a total of 4 times in the last month. After this increase, petrol and diesel have become costlier by Rs 7.5 per liter overall. After a long gap of last four years, this increase in prices was done due to tension in the Middle East.

However, despite this increase in prices, government oil companies are still incurring a loss of about Rs 5.5 per liter on petrol and about Rs 4.5 per liter on diesel. Including these, companies are still incurring a total loss of more than Rs 550-600 crore every day, which is not good in the long run.

Will there be another increase of Rs 5?

ICRA and financial analysts believe that if oil companies have to reach ‘no profit, no loss’ situation, then another increase of Rs 5 per liter in retail prices may be required. Analysts are calling this increase necessary, but the government is avoiding allowing the full increase to oil companies immediately to keep inflation under control at the retail level. As an alternative, the government has also tried to handle this burden itself by making some cuts in excise duty.

crude oil prices

India imports about 85% of its crude oil requirement from abroad. Currently Brent crude is around $92-95 per barrel. This price level is fine for Indian oil companies. In such a situation, they do not feel any immediate need to increase the retail prices. Pressure on oil companies to increase prices comes when crude oil crosses $100 per barrel and remains at that level for several weeks. There is no such serious situation right now.

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Pakistan amid Hormuz Blockade: US President Donald Trump has ordered a naval blockade in the Strait of Hormuz. Under this, it includes attacking and seizing ships connected to Iranian ports.

Iran’s maritime trade has almost come to a standstill due to the siege of the Strait of Hormuz by the US Army. Due to this, neither Iran is able to access the global markets nor is it able to supply essential commodities in its country.

Trump’s blockade work is complete

Meanwhile, Pakistan has broken this blockade by taking a strategic step. Due to the siege of the Strait of Hormuz by America, more than 3000 containers are stranded at Pakistani ports like Karachi and Qasim Port. Actually, Pakistan has opened 6 new land routes for Iran, with the help of which now these goods can be sent directly to Iran through road.

6 major land routes

• Gwadar to Gabd- This is the shortest, but most important route. It can reduce transit time by up to 87 percent.
• Karachi/Port Qasim- Lyari-Aurmara-Pasni-Gabad- This is a coastal highway.
• Karachi/Port Qasim- Khuzdar-Dalbandin-Taftan- This is the oldest and traditional trade route between Iran and Pakistan.
• Gwadar-Turbat-Panjgur-Quetta-Taftan- This is a route connecting the interior areas of Balochistan.
• Gwadar-Lyari-Khuzdar-Quetta-Taftan- It is a route connecting the port to alternative highways.
• Karachi/Port Qasim-Gwadar-Gabad- An easy way to reach the ports and borders.

Pakistan turned the tables

The purpose of Trump’s blockade was to completely stop Iran’s import and export, but Pakistan has acted as a lifeline for Iran by opening these routes. According to India Today report, geopolitical analyst Himanshu Jain called this move a significant turning point and said that Pakistan has ‘legally made a dent’ in the US blockade, while America is continuously tightening the restrictions.

“Now the game has changed,” he said. Pakistan has made a legal dent in the US naval blockade of Iran at the very moment Trump canceled ceasefire talks and imposed new sanctions.

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