India Can Use Tax Buffer to Stabilize Retail Fuel Prices Until Brent Hits $110 per Barrel

A report by Elara Capital indicates that India can use existing excise duty cuts on gasoline and diesel to shield retail fuel prices until crude oil prices reach about $110 per barrel. Beyond this threshold, price increases for diesel and gasoline may become unavoidable, shifting the cost burden to consumers. The report highlights potential losses for oil marketing companies and LPG subsidies, noting that while refining margins may improve with rising crude prices, they may not fully offset these losses. It also mentions risks from geopolitical tensions affecting LNG imports.