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News 5 of 26

India Cuts Excise Duty by ₹10/Litre, Boosts SPR to 11.8 MMT Amid Iran War & Strait of Hormuz Blockade

Intl. RelationsEconomySecurity & DefenceHIGH
Target:UPSC GS-IIMPSCSSC GATeachingPrelims HighMains HighStatic GK Link
28 Mar 2026
~2 min
Source: Indian Express
Key Data:War began February 28, 2026Excise duty cut ₹10/litreSPR: 5.3 MMT existing, adding 6.5 MMTStrait of Hormuz: 20% global energyBab al-Mandeb: 12% global tradeBrent crude: $73 to $110.86/barrel
Bodies:International Energy Agency (IEA)International Maritime Organization (IMO)G7
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What This Article Covers

1.The West Asia war has entered its second month with Iran blockading the Strait of Hormuz, holding a fifth of global energy supplies hostage, causing a severe global energy crunch.

2.India has implemented a multi-pronged strategy to mitigate the crisis, including cutting excise duties on fuel, prioritizing domestic LPG production, and expanding its strategic petroleum reserves (SPR).

3.Iran has threatened to escalate by disrupting trade in the Bab al-Mandeb Strait, while Israel's 'decapitation' strikes have so far failed to achieve regime change objectives.

The Big Picture
Prelims · HighMains · High

The month-long US-Israel-Iran conflict has triggered a global energy crisis via Iran's blockade of the Strait of Hormuz, disrupting over 20% of global energy supplies. In response, India has taken fiscal and strategic measures, including a ₹10/litre excise duty cut and boosting its strategic petroleum reserves, to shield its economy from supply shocks and soaring crude prices.

Exam Lens

Quick Exam Facts From News

War Start DateFebruary 28, 2026
Strait of Hormuz ImportanceHandles 20% of global energy supplies
India's Fuel Duty Cut₹10 per litre on petrol & diesel
India's SPR TargetAdd 6.5 MMT to existing 5.3 MMT
Total Fatalities (approx.)Over 3,000
Bab al-Mandeb Trade Share12% of global trade

1-Minute Revision

  • ›War Start Date: February 28, 2026
  • ›Strait of Hormuz Importance: Handles 20% of global energy supplies
  • ›Target this Data: India's SPR capacity (5.3 MMT existing, adding 6.5 MMT) and excise duty cut (₹10/litre).
  • ›Target this Nodal Body: International Energy Agency (IEA) and International Maritime Organization (IMO).
  • ›Target this Geo-point: The Strait of Hormuz handles 20% of global energy; Bab al-Mandeb handles 12% of global trade.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The Strait of Hormuz, a key chokepoint in the recent conflict, is located between which two bodies of water?

Q2Statement-basedHard

Consider the following statements regarding the West Asia conflict as per the news article:

1. The International Energy Agency (IEA) chief stated the current energy disruption is worse than the 1970s oil crises combined.

2. India imports approximately 90% of its LPG through the Strait of Hormuz.

3. The Bab al-Mandeb Strait reduces maritime travel distance between Asia and Europe by about 8,900 kilometres.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, by how much has the Indian government reduced the Special Additional Excise Duty (SAED) on petrol and diesel?

Q4Application/ImpactMedium

What is a primary strategic objective of Iran's blockade of the Strait of Hormuz as indicated in the article?

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