India & Vietnam Slash Fuel Taxes Amid Iran Conflict 📈

India and Vietnam have aggressively reduced fuel taxes to insulate domestic markets from soaring global oil prices and supply disruptions in the Strait of Hormuz. • India’s Fiscal Intervention Petrol: Special excise duty slashed from 13 to 3 Indian rupees per litre. Diesel: Special excise duty reduced from 10 Indian rupees to zero. Fiscal Impact: Estimated annual revenue loss of 1.55 trillion Indian rupees; intended to offset 30%–40% of losses incurred by oil marketing companies. • India’s Energy Vulnerability Import Dependency: India imports over 90% of its crude oil and 60% of its cooking gas (LPG). Regional Risk: 90% of LPG imports originate from the Middle East, highlighting high exposure to the Iran conflict. Supply Chains: Export duties imposed on aviation fuel and diesel to prioritize domestic stocks; authorities report stable supplies for fertilisers and coal. • Vietnam’s Market Stabilization Tax Suspension: Environmental protection and special consumption taxes on petrol, diesel, and jet fuel suspended until 15 April. Objective: Immediate stabilization of the domestic transport and energy sectors following the war on Iran. • Market Context Based on provisional data, both nations are prioritizing inflation control over fiscal revenue as global shipping and gas availability face heightened uncertainty. In India, panic buying has been reported despite official assurances of adequate domestic supply.