India raises fuel prices amid rising tensions with Iran

India Raises Fuel Prices Amid Energy Crisis

The government of India has announced a 3% increase in fuel prices, effective immediately, as part of efforts to offset losses triggered by the energy crisis driven by the Iran war and closure of the Strait of Hormuz. The price hike applies to both gasoline and diesel, with gasoline now priced at 97.77 rupees per liter and diesel at 90.67 rupees per liter.

As the world’s third-largest oil importer, India relies heavily on overseas supplies, with approximately half of its usual crude supplies transiting the Strait of Hormuz. This has led to significant impacts from rising energy prices and supply disruptions.

In response to the crisis, Prime Minister Narendra Modi recently urged Indians to adopt voluntary austerity measures, including working from home whenever possible, limiting travel abroad, and reducing purchases of gold. The government has also announced fuel-saving measures in the capital city of New Delhi, including mandatory work-from-home days for certain government employees.

The Indian capital became the first state to roll out these measures on Thursday, with authorities aiming to reduce official fuel use and encourage people to rely more on public transport. Employees whose work can be done remotely will have to work from home two days a week, while private companies are being encouraged to adopt similar measures.

India has also accelerated blending ethanol into gasoline as part of its push to cut crude oil imports. The country has signed pacts with the United Arab Emirates (UAE) on oil and gas, as well as strategic defense cooperation, amid the ongoing supply issues.

The UAE government’s media office announced plans to accelerate construction of a new oil pipeline that will expand its ability to bypass the Strait of Hormuz, with an opening now expected in 2027.

Source: Al Jazeera