The ripple effects of the ongoing Middle East conflict have finally reached Indian fuel stations. India’s largest private fuel retailers, including Reliance-BP and Nayara Energy, have announced an upward revision in the prices of petrol and diesel. This move comes in response to the steep rise in international crude oil prices, which have breached the $100 per barrel mark due to supply chain disruptions caused by the Iran-Israel conflict.

Industry insiders suggest that private retailers were operating at a significant loss as global rates surged while domestic prices remained stagnant for a brief period. To mitigate these under-recoveries, private outlets have increased prices by ₹2 to ₹5 per litre in several regions. While state-run oil marketing companies (OMCs) like IOCL and BPCL are currently maintaining a cautious stance, the pressure from the international market is becoming increasingly difficult to ignore.

The hike in fuel prices is expected to trigger a fresh wave of inflation across the country. Higher transportation and logistics costs will inevitably lead to an increase in the prices of essential commodities, including vegetables and FMCG products. As Asia grapples with an energy crisis triggered by the geopolitical standoff, Indian consumers are bracing for a tough period ahead with their monthly budgets set to take a hit. All eyes are now on the central government to see if any excise duty cuts will be introduced to provide relief to the common man.