The Prime Minister’s virtual summit with Chief Ministers concluded after nearly two hours on Friday, with the Centre formalising a new Inter-Ministerial Group (IMG) to navigate the economic turbulence caused by the war in West Asia. Chaired by Defence Minister Rajnath Singh, this high-level body — which includes heavyweight portfolios such as Home, Finance, and Petroleum — has been tasked with the real-time monitoring of global trade disruptions as the conflict between the US, Israel, and Iran enters its second month.
The formation of the IMG follows a rigorous review by the Cabinet Committee on Security, where the Prime Minister evaluated the potential fallout on everything from the spring sowing season to the national power grid. To shield the public from soaring global energy prices, the government has moved aggressively on the fiscal front, slashing excise duty on petrol to ₹3 per litre and remarkably bringing the duty on diesel down to zero. To ensure domestic supply remains the priority, a windfall tax of ₹21.5 per litre has been slapped on diesel exports, while Aviation Turbine Fuel has also seen a duty adjustment to help stabilise the airline sector.
The Ministry of Petroleum has been particularly vocal in its efforts to prevent a repeat of recent panic-buying scenes. In a fresh statement, officials reassured the public that retail outlets across the country are operating as normal with "adequate stocks" of both petrol and diesel. Petroleum Minister Hardeep Singh Puri also took the opportunity to flatly dismiss social media rumours of a looming nationwide lockdown, describing such speculation as entirely baseless and reaffirming that India’s energy security remains intact despite the volatility in the Strait of Hormuz.
While the Prime Minister has previously warned that this global shock may take a "long time to recover," the immediate focus remains on tactical stability. Beyond fuel, the government has reviewed coal stocks at power plants — confirming there is no imminent threat of blackouts — and is looking to diversify import sources for essential fertilisers ahead of the Kharif season. For now, the message from New Delhi is one of guarded confidence: while the geopolitical map is shifting, the country’s ports remain open, its sailors in the Persian Gulf are safe, and the machinery of state is fully engaged in limiting the impact on the average household.
Also read: West Asia crisis: PM Modi to meet CMs
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