Top of the Morning: India plans fuel price buffer against crude shocks
India is exploring a price stabilisation mechanism for petrol, diesel and liquified petroleum gas (LPG), on the lines of the Price Stabilisation Fund for agricultural products, to shield consumers from global crude shocks.
The plan involves creating fuel buffers through contracts with refiners, allowing supplies to be released during crises, such as the ongoing Iran war that’s pushed crude oil prices above $100/barrel. Unlike strategic crude oil reserves, it targets refined fuel for direct market intervention.
