Oil Prices in India Today: With Iran-Israel tensions growing, international oil prices have skyrocketed and India, the world’s leading oil importing nation as well, is feeling the pinch. The cost of the Indian crude oil basket is currently around ₹7,500 per barrel (around $90). All oil marketing companies are watching the hike closely, and consumers are already bracing for a hike in petrol and diesel prices in metro cities.
Now, petrol in Delhi costs ₹96.72 a liter and diesel ₹89.62 a liter. In Mumbai, it is worse still — petrol for ₹106.31 and diesel for ₹94.27 a liter. Though these are constant for the past few months because these are regulated by the government, there will be no option for oil companies but to transfer the cost if crude continues to rise.
There’s a huge concern around the Strait of Hormuz, which is a significant oil shipping channel near Iran, through which nearly 20% of global oil flows. Any disruption there evokes freight, risk, and insurance expenses all of which contribute to India’s oil import bill. As long as the standoff between Iran and Israel remains, this uncertainty continues to push global and Indian crude prices upward.
Pundits caution that when the conflict intensifies, crude oil prices can breach ₹8,300 per barrel (above $100), which will virtually certainly lead to a hike in petrol, diesel, and even LPG prices in India. It may also escalate inflation, raise transport and food prices, and further depreciate the rupee, making imports more expensive overall.
Also Read: Sensex Drops 800 Points as Oil Prices Spike
For Indian businesses and consumers, this could mean a tighter purse and reduced purchasing power. The government will step in in the form of tax cuts or subsidies, but that may put a strain on the public exchequer.
With rising geopolitical uncertainties, so does the pressure on India’s oil-dependent economy. Unless diplomatic efforts manage to temper passions, Indian fuel prices can continue to travel in one direction in the weeks to come.
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