India hikes fuel prices for first time in 4 years amid Mideast crisis

Feeling the strain of the ongoing Middle East conflict on energy supplies, India announced its first fuel price hike in more than four years on Friday, according to public broadcaster All India Radio.

Petrol and diesel rise in Delhi

The price of petrol was increased by three rupees (3 cents) per liter, bringing it to 97.77 rupees ($1.2) in New Delhi, while diesel rose to 90.67 rupees (95 cents) per liter. The hike follows no price increases since April 2022 and comes days after a top Indian official warned that oil companies were facing heavy losses due to the fallout from the energy shock. Officials said India’s oil marketing companies had absorbed losses of nearly 10 billion rupees ($104.5 million) daily to ensure the “burden of global astronomical prices is not passed to Indian citizens.”

Modi urges conservation as India resumes Iranian oil imports

India procures almost 50% of its energy supplies—worth $180 billion in 2024—from the Middle East. Last month, India announced it had resumed oil purchases from Iran for the first time in seven years amid the conflict that began on February 28. Prime Minister Narendra Modi last week urged citizens to reduce fuel consumption through measures such as working from home and even reduced the size of his own motorcade. Authorities in New Delhi also announced two days of work-from-home per week for government employees. The Strait of Hormuz, through which roughly 20% of global oil shipments pass, has faced severe disruption since the US and Israel launched strikes on Iran. Türkiye, as a major energy importer, continues to monitor the situation closely and has called for de-escalation to prevent further global energy price volatility.