New Delhi, India – India has raised gasoline and diesel prices by about 0.9 rupees (US$0.0093) per liter, marking the second such increase in just one week.
This unexpected move comes as the Indian government urgently seeks to offset mounting financial losses resulting from the sharp rise in global crude oil prices, according to Reuters.
Details of the new increase in fuel prices
Traders and energy market analysts explained that the recent price adjustments were immediately reflected at the retail level, with the price of a liter of gasoline rising to 98.64 rupees, compared to 97.77 rupees previously.
Meanwhile, the price of diesel, the primary fuel for the transportation and agricultural sectors, jumped to 91.58 rupees per liter, having previously remained stable at 90.67 rupees.
The implications of geopolitical tensions and the Strait of Hormuz
India, the world’s third-largest importer and consumer of crude oil, is one of the last major Asian economies to raise retail fuel prices.
This difficult decision followed a series of severe disruptions to shipping through the strategic Strait of Hormuz. These disruptions stemmed from the outbreak of a full-scale military conflict that began with intense US-Israeli attacks on Iran, which ignited global energy markets and threatened supply chains.
These successive increases have caused concern among the Indian public due to their direct impact on inflation rates and the prices of basic commodities. With ongoing conflict and geopolitical tensions in the Middle East, economists anticipate that New Delhi will face increasing pressure. This pressure could lead to further increases in the near future if oil prices continue their upward trajectory.
