Will the Oil Crisis Impact India?

The ongoing conflict involving the United States, Israel and Iran, along with disruptions to oil shipments through the Strait of Hormuz, has placed intense pressure on global fuel markets. Diesel prices have reached record levels in countries such as the United States and France, while fuel shortages have also been reported in some regions. In the US, average diesel prices have climbed above $6 per gallon, according to recent reports. In France, average diesel prices have crossed €2.39 per litre, while around one in nine fuel stations has reportedly faced stock shortages, with some regions experiencing even more severe disruptions.

The situation has been further complicated by disruptions to oil infrastructure, including an attack on Saudi Aramco’s East-West pipeline. Reuters reported that Aramco informed at least two European refiners that their October crude supplies would be halted following the attack. Meanwhile, UK inflation rose to 3.1% in August, with the Office for National Statistics reporting a 23% annual increase in motor fuel prices. Petrol averaged 161.3 pence per litre and diesel 181.8 pence per litre. Rising fuel costs are adding pressure to transportation, agriculture and consumer prices. In India, concerns are growing over possible fuel shortages and price increases, but there is currently no official confirmation of a nationwide petrol or diesel shortage or a major price hike.