New Delhi: The ongoing conflict involving Iran has triggered a sharp surge in global energy prices, with crude oil and natural gas rates rising by up to 30% in the international market.
The spike comes after reported attacks on oil and gas facilities in neighbouring regions, forcing the shutdown of a major gas plant in Qatar. This disruption has led to a significant increase in gas prices in Europe.
For India, the impact has been immediate, with crude oil prices nearly doubling to around $146 per barrel since the conflict began. If the upward trend continues, petrol and diesel prices in the country could increase by ₹10 to ₹15 per litre, raising concerns about inflation and household expenses.
What is the ‘Indian basket’?
India imports most of its crude oil from countries such as Iraq, Saudi Arabia, Russia and the UAE. The average price of crude sourced from these nations is referred to as the ‘Indian basket’. Any increase in this benchmark directly influences domestic fuel pricing decisions.
Impact on inflation and daily life
Higher fuel prices are expected to increase transportation costs, making essential goods like vegetables, fruits and grains more expensive. Logistics expenses rise as diesel prices go up, and the additional burden is passed on to consumers.
Manufacturing costs are also likely to increase, affecting prices of everyday items such as soap, plastic goods and medicines, as industries rely heavily on fuel for production and distribution.
Impact on agriculture
In agrarian states like Punjab, diesel is crucial for operating tractors, tube wells and harvesting machinery. A ₹10–15 hike in diesel prices could significantly raise farming costs, eventually impacting food prices across markets.
With global uncertainty continuing, experts warn that sustained pressure on energy supplies could further strain economies dependent on fuel imports, including India.
