In a major relief for oil buyers, US President Donald Trump on Friday (local time) temporarily paused new sanctions and tariffs linked to Russian oil purchases. The move is expected to provide some relief to India and China, which import large amounts of crude oil from Russia. The decision, which comes at a time when global crude oil prices are rising sharply, has raised questions about whether it could lead to cheaper petrol and diesel in several countries, including India.
Why Did Trump Pause Sanctions?
A press release issued by the White House noted that Trump temporarily paused certain sanctions, trade restrictions and import duties under the Lindsey O Graham Sanctioning Russia and Iran Act of 2026. The law gave him the power to impose tariffs of up to 100 per cent on goods from major buyers of Russian oil and gas under certain conditions. However, Trump has now paused it saying that the decision was in the interest of the US. The move, therefore, reduces the immediate threat of additional US tariffs on several countries which are major buyers of Russian oil.
Will Petrol And Diesel Prices Fall In India?
For India, the waiver comes as a significant relief as the US Ambassador to India Sergio Gor said on Thursday had stated that India falls into one of the three categories covered under the sanctions law, along with several other countries. With Trump’s latest decision, India can continue buying Russian oil and reduce the immediate risk of additional tariffs.
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However, it is important to note that the move does not directly reduce the price of crude oil in the global market or in India. This is because petrol and diesel prices in India depend on a number of factors, including international crude prices, the rupee’s value against the dollar, refining costs, taxes and decisions by oil companies.
As the crude oil is still close to USD 110 per barrel, there is no clear sign that petrol and diesel prices will fall in the coming weeks. According to oil price tracking websites, oil prices remained high at the close of trading on Friday. Brent crude, the global benchmark, stood at USD 109.86 per barrel, while US-based WTI crude reached US 101.41 per barrel.
Fuel Prices May Rise In November
The higher crude prices are a concern for India as the country depends heavily on imported oil. The concerns are further raised by a Bloomberg report, which states that the government can consider raising petrol and diesel prices in November. The report, citing Alexandra Hermann Prasad, lead economist at Oxford Economics suggests that the increase could be around half of the cumulative 7.5 per cent rise seen in May.
This revision is expected in states where elections are scheduled to be held early next year: Uttar Pradesh, Punjab, Uttarakhand, Goa, Manipur, Himachal Pradesh, and Gujarat. However, the proposed hike has not been confirmed by the government.
What Does This Mean For Common Man?
While Trump’s decision offers India some relief from the threat of additional US tariffs at present, it does not guarantee cheaper fuel. As crude oil prices are still high, petrol and diesel prices may remain under pressure in domestic markets.
Petrol and Diesel prices in major Indian cities:
City | Petrol (Rs/litre) | Diesel (Rs/litre) |
|---|---|---|
New Delhi | Rs 102.12 | Rs 95.20 |
Mumbai | Rs 111.21 | Rs 97.83 |
Kolkata | Rs 113.51 | Rs 99.82 |
Chennai | Rs 107.76 | Rs 99.55 |
Bengaluru | Rs 111.68 | Rs 99.56 |
Hyderabad | Rs 116.15 | Rs 104.23 |