Chennai, May 15:
India’s long-held fuel price stability has finally given way to global reality. The Centre has approved a hike of around ₹3 per litre in petrol and diesel, ending a prolonged freeze even as international crude prices surged amid the escalating Iran conflict.
For months, India stood apart from global trends, cushioning consumers despite rising oil costs. That buffer has now thinned. At the heart of the increase lies a geopolitical tremor. The ongoing conflict involving Iran has disrupted critical oil supply chains, particularly through the Strait of Hormuz — a narrow but vital artery through which a significant portion of the world’s crude flows. Any instability here sends ripples across global markets, and this time has been no different. Crude prices have climbed sharply, breaching psychological thresholds and putting importing nations like India under pressure.
India, which depends on imports for the vast majority of its crude needs, finds itself especially vulnerable in such scenarios. Oil marketing companies, which had been absorbing the rising costs for an extended period, were reportedly incurring heavy daily losses. The price revision, therefore, is as much a correction as it is a compulsion