India raises fuel prices as Middle East war strains supply.

India’s state‑run oil companies increased petrol and diesel prices by more than three percent on Friday, a move prompted by growing pressure on the economy from disruptions to energy supplies caused by the war in the Middle East.

This is the first rise in automobile fuel prices in India since the conflict began in February, which led to Iran’s near‑total blockade of the Strait of Hormuz.

India, the world’s third‑largest oil buyer, normally imports about half of its crude through the Strait of Hormuz.

In Delhi, petrol rose to 97.77 rupees ($1.02) per litre from 94.77 rupees, while diesel increased to 90.67 rupees from 87.67 rupees, according to data from the Indian Oil Corporation.

Fuel rates vary across the country because of differing local taxes.

Oil companies have reported losses due to higher global crude prices.

The government had previously raised the price of liquefied petroleum gas (LPG), a primary cooking fuel for millions of households.

The latest increase follows a series of austerity measures aimed at reducing fuel consumption and conserving foreign exchange.

Delhi’s chief minister announced on Thursday that government offices would allow two work‑from‑home days a week for employees who can work remotely, and urged residents to limit private vehicle use.

These steps come after Prime Minister Narendra Modi said that fuel‑use restrictions were necessary to preserve foreign currency spent on imports.

India has increased imports of Russian crude to offset shortages from the Middle East, according to ship‑tracking and import data, following a temporary U.S. waiver on sanctions.

With the waiver set to expire on Saturday, Foreign Minister Subrahmanyam Jaishankar criticised “unilateral coercive measures” without naming a specific country.

“Such measures disproportionately affect developing countries,” he said on Thursday while meeting foreign ministers from BRICS nations, including Iran’s Abbas Araghchi and Russia’s Sergey Lavrov – representatives of two countries heavily sanctioned by the U.S.

“These unjustifiable measures cannot substitute dialogue, nor can pressure replace diplomacy.”

AFP

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