Indian Consumers Feel Pinch as Oil Prices Surge Amid Global Tensions

The continuing volatility in international crude oil prices and the growing military tension in the Middle East are now beginning to have a direct impact on the pockets of Indian consumers. The country's state-owned oil companies have increased the prices of petrol and diesel by about 90 paise per liter on Tuesday morning. This is a double blow for the general public, as the oil companies had made a major increase of about 3 rupees per liter last Friday (May 15). This is the second major increase in fuel rates within a week. According to market analysts and industry sources, this increase is a direct result of the ongoing diplomatic and military crisis globally. The increasing standoff between the United States and Iran and the possibility of supply disruptions on the'Hormuz Strait'route has kept international crude oil prices above $100 per barrel. This was causing heavy daily losses to Indian refining companies. Although the increase of 3 rupees last week was close to 25 percent in losses, the companies believe that the difference between the sale price and the global price is small (if not soon).