West Asia crisis drives fuel price hike, raising inflation concerns

By:- Mr. Ajit Mishra  SVP, Research, Religare Broking Ltd

“The sharp increase in petrol, diesel, and CNG prices reflects the direct impact of the escalating West Asia energy crisis and supply disruptions around the Strait of Hormuz. With global crude oil prices surging from nearly $69 in February to above $120+ per barrel and currently at $107 mark, oil marketing companies were under mounting pressure due to rising input costs and shrinking marketing margins. While fuel availability remains stable, the hike is likely to intensify inflationary pressures across the economy. Higher transportation and logistics costs could gradually push up prices of essential goods and services, increasing the burden on household budgets and raising overall cost-of-living concerns in the near term.”