Donald Trump Guardian Fee: Donald Trump’s announcement of 20% guardian fee on the Strait of Hormuz may increase the prices of petrol and diesel in India. Know the complete mathematics of Super Tanker, cost of crude oil, Iran’s toll and its possible impact on India’s inflation.
The Strait of Hormuz, one of the world’s most important maritime trade routes, is once again in the global headlines. US President Donald Trump has claimed that super oil tankers passing through this route will have to pay a 20% “guardian fee” in exchange for American protection. On the other hand, Iran has already been talking about collecting toll from some ships. If such additional cost is actually implemented, its impact will not be limited to just shipping companies but may also impact petrol-diesel and inflation in major oil importing countries like India.
After all, how big is a super oil tanker?
VLCC (Very Large Crude Carrier) is counted among the largest oil ships in the world. In these, about 20 lakh barrels of crude oil can be transported at one time. One barrel contains 159 liters of oil, which means a ship contains approximately 318 million liters of crude oil. According to current prices, the value of oil in one such tanker can reach around $160 million (about Rs 1,539 crore).
For this reason, if any additional duty is imposed based on the value of the cargo, its amount can reach millions of dollars.
How much can expenses increase due to Trump’s fees and Iran’s toll?
According to the estimates given, the duty charged by Iran of about $2 million imposes an additional burden of about $1 per barrel. At the same time, if a system like Trump’s proposed 20% duty is implemented, then an additional expense of up to $ 30 million can be incurred on a super tanker, which comes to about $ 15 per barrel.
Calculating this on the basis of the current dollar-rupee exchange rate, an increase in the cost of crude oil can be estimated by about Rs 9 per liter. However this is only a theoretical calculation. The actual price will depend on how the duty is applied, how much of the burden the oil companies themselves bear and what the government’s tax policy is.
What will be the impact on India?
India imports more than 80% of its crude oil needs and a major part of it comes through the Strait of Hormuz from countries like Saudi Arabia, Iraq, UAE, Kuwait and Qatar. If import costs increase then petrol and diesel may become expensive. Along with this, pressure on prices of transport, vegetables, milk, grains and other everyday items may also increase.
However, India has also increased oil imports from Russia, America and African countries. Apart from this, the country also has Strategic Petroleum Reserves and several long-term supply agreements, which can provide relief in any emergency.
Disclaimer: The price estimates mentioned in this article are based on available data and general calculations. The actual impact will depend on the international market, shipping costs, government policies, oil companies’ pricing processes and the final form of the proposed tariff.