India’s state owned oil companies have increased petrol and sel prices by more than three percent as the ongoing Iran war continues to disrupt global energy supplies and place pressure on the country’s economy.
The fuel price adjustment marks the first major increase in automobile fuel costs since the conflict began in February. The crisis has intensified following Iran’s near total blockade of the Strait of Hormuz, a key global shipping route through which India receives nearly half of its crude oil imports.
According to data released by the Indian Oil Corporation, petrol prices in Delhi rose from 94.77 rupees to 97.77 rupees per litre, while sel increased from 87.67 rupees to 90.67 rupees per litre. Fuel prices may differ across states because of local taxes and levies.
Indian oil companies say rising global crude oil prices have forced them to increase fuel costs to reduce mounting financial losses. The government had earlier raised prices of liquefied petroleum gas used by millions of households for cooking.
Authorities have also introduced austerity measures aimed at reducing fuel consumption and preserving foreign exce reserves. Delhi’s Chief Minister announced that government employees capable of working remotely would observe two work from home days weekly. Residents were also encouraged to reduce private vehicle usage.
Prime Minister Narendra Modi recently defended the restrictions, stating that they are necessary to manage the country’s heavy spending on fuel imports.
India has increased imports of Russian crude oil in recent months to offset shortages caused by inility in the Middle East. However concerns remain as the temporary United States sanctions waiver on Russian oil imports is expected to expire soon.
Speaking during a meeting of BRICS foreign ministers, India’s Foreign Minister Subrahmanyam Jaishankar criticised unilateral sanctions and warned that such measures often hurt developing economies more severely than wealthier nations.
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