Iran War And Resulting Energy Crisis Forces India to Raise Fuel Prices

In the wake of the Iran conflict that has created an energy crisis, India has decided to hike fuel prices. India has raised fuel prices by about three per cent, with the growing global cost of energy and disruption on account of the Iran conflict starting to impact the Indian economy.

The government has decided to increase the price by 3 rupees per litre on Friday to ease price squeeze due to the shortage of supplies and rise in crude oil prices. After the hike, petrol was sold at Rs 97.77 a litre, and diesel is Rs 90.67 per litre.

India being the third largest importer of oil, imports 90% of it, more than half pof which comes from the strait of Hormuz. Rising international prices and disruptions has resulted in a pressure on New Delhi, forcing the government to raise prices.

Modi called on people to work from home wherever feasible, avoid unessential foreign trips, public transport and car pool, and reduce usage of fertilizers. He called fuel conservation an act of “patriotism.”

Opposition parties criticized the timing of the decision, saying that during the last few election campaigns for the state governments, the pricing of fuel had not been changed. Earlier this month, elections were held and Bharatiya Janata Party (BJP) won two of the four contested states.