India hikes fuel prices as Iran crisis bites
Summary
India raised fuel prices by about 3 percent due to disruptions in oil supply caused by the conflict involving Iran and the closure of the Strait of Hormuz. The government is also promoting fuel-saving measures and has signed new energy and defense agreements with the United Arab Emirates to improve energy security.Key Facts
- India increased gasoline prices to 97.77 rupees and diesel to 90.67 rupees per liter, a roughly 3 percent rise.
- The price hike is a response to fuel shortages linked to the Iran war and the closure of the Strait of Hormuz, a key oil shipping route.
- India imports 90 percent of its oil, with about half passing through the Strait of Hormuz, making it vulnerable to supply disruptions.
- Prime Minister Narendra Modi urged citizens to save fuel by working from home, using public transport, and reducing gold buying.
- New Delhi introduced mandatory work-from-home days for some government workers to reduce official fuel use.
- India is increasing the amount of ethanol blended into gasoline to reduce crude oil imports, with current blends at 20 percent and proposals for up to 100 percent in compatible vehicles.
- India signed oil, gas, and defense cooperation deals with the United Arab Emirates during Modi’s international tour.
- The UAE plans to build an oil pipeline by 2027 to bypass the Strait of Hormuz and improve oil transport security.
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