India Hikes Fuel Prices Again Due To Middle East War

India’s state-run fuel companies raised petrol and diesel prices for the fourth time in 10 days on Monday, as the Middle East war strains supplies to the world’s fastest-growing major economy.

Automobile fuel prices have increased by five percent since the war broke out in February, prompting Iran’s near-total blockade of the Strait of Hormuz, a critical energy corridor.

India, the world’s third-largest oil buyer, normally sources about half of its crude through the vital waterway.

Fuel rates vary across the country, but prices have broadly been increased by a little over two rupees ($0.02) after the latest adjustment.

In New Delhi, petrol prices rose to 102.12 rupees from 99.5 rupees, while diesel is now at 95.20 rupees.

The hike comes days after Prime Minister Narendra Modi said restrictions on fuel use were necessary to save foreign currency spent on imports.

India has ramped up imports of Russian crude to plug gaps in supplies from the Middle East, ship-tracking and import data show, following a temporary US waiver on sanctions.

Earlier this month, Minister for Petroleum and Natural Gas, Hardeep Singh Puri, said oil marketing companies had taken a hit to their revenues — losses of up to $120 million per day — but assured of “uninterrupted energy imports and supply”.

AFP