In India, petrol and diesel prices have risen by nearly ₹7.5 per litre over two weeks due to instability in West Asia, particularly affecting the Strait of Hormuz. Even if the US-Iran conflict resolves, immediate relief in fuel prices is unlikely due to factors like delayed retail price adjustments and a weak rupee.

• 01Petrol prices have surpassed ₹100 per litre in most Indian cities following four price hikes in two weeks.
• 02India imports over 85% of its crude oil, with nearly half passing through the Strait of Hormuz, making it vulnerable to geopolitical disruptions.
• 03State-run oil marketing companies had previously frozen prices but have now increased them to recover losses from earlier periods.
• 04A weak rupee exacerbates the cost of oil imports, meaning that even a drop in global crude prices may not lead to lower retail prices in India.
• 05Fuel price inflation is expected to impact various sectors, leading to increased costs for transportation, food, and other consumer goods.

Rising fuel prices are expected to increase transportation and food costs across India, affecting household budgets.