India has raised petrol and diesel prices nationwide as rising global crude oil prices linked to the Iran conflict began feeding into domestic fuel markets, increasing inflation concerns in the world’s third-largest oil importer.
Petrol and diesel prices were increased by about $0.04 per litre following a 3 rupee hike, with the new rates taking effect on May 15.
In New Delhi, petrol prices rose to 97.77 rupees ($1.17) per litre from 94.77 rupees, while diesel prices increased to 90.67 rupees from 87.67 rupees, according to state-run fuel retailers.
The increase marks one of the biggest retail fuel price adjustments in recent years and reflects mounting pressure on India’s energy import bill as tensions in the Middle East drive up crude prices.
Global oil markets have been rattled by fears that the conflict involving Iran could disrupt shipments through the Strait of Hormuz, a key transit route for global oil and gas supplies.
Analysts say prolonged instability in the region could push crude prices higher, posing risks for import-dependent economies such as India, which imports more than 80% of its crude oil needs.
State-run oil marketing companies had reportedly absorbed part of the increase in crude prices for several weeks before adjusting retail fuel prices.
Economists warned the higher fuel costs could ripple across the broader economy by raising transportation, logistics and manufacturing expenses.
Diesel price increases are expected to particularly affect freight and agricultural transport costs, potentially lifting prices of food and other essential goods in the coming weeks.
The development also complicates the inflation outlook for the Reserve Bank of India, which has been closely monitoring the impact of global commodity volatility and geopolitical tensions.
Consumers and businesses reliant on fuel-powered transportation are likely to feel the immediate impact, including ride-hailing companies, delivery operators and trucking firms, industry analysts said.
The latest price rise has also renewed debate over India’s long-term energy security strategy, including efforts to diversify crude import sources, expand renewable energy capacity and strengthen strategic petroleum reserves.
Analysts said fuel price volatility could remain a significant challenge if tensions in the Middle East persist and global crude markets remain under pressure.
Reporting by Mohd Hassan; Edited by Faustine N Gila (Impact Newswire)
Stay ahead of the stories shaping our world. Subscribe to Impact Newswire for timely, curated insights on global tech, business, and innovation all in one place.
Dive deeper into the future with the Cause Effect 4.0 Podcast, where we explore the ideas, trends, and technologies driving the global AI conversation.
Got a story to share? Pitch it to us at info@impactnews-wire.com and reach the right audience worldwide
Mohd Hassan has extensive experience in news gathering, editing, and writing for the newswire industry, Contact – Info@impactnews-wire.com
Discover more from Impact Newswire
Subscribe to get the latest posts sent to your email.
