India Raises Fuel Prices, Middle East Energy Shock Effects Felt

India raised fuel prices for the first time in more than four years. (Anadolu)

JAKARTA - India raised fuel prices for the first time in more than four years. Citing a report from Anadolu Agency, Friday, May 15, the move was taken after the Middle East conflict put pressure on global energy supplies.

The price of petrol in New Delhi rose by three rupees to 97.77 rupees per litre. The price of diesel became 90.67 rupees per litre, according to All India Radio.

This is the first increase since April 2022. The Indian government said that oil marketing companies incurred losses of nearly 10 billion rupees or about 104.5 million US dollars per day so that the surge in global prices would not be directly charged to citizens.

The pressure is hard to avoid. India obtains almost 50 percent of its energy supply from the Middle East. The value reaches 180 billion US dollars in 2024.

Last month, India bought oil from Iran for the first time in seven years. The move was made amid the ongoing Middle East conflict since February 28.

Prime Minister Narendra Modi last week asked residents to reduce their fuel consumption, including by working from home. Modi also cut his motorcade to save fuel.

The government of New Delhi took a similar step. Government employees are asked to work from home two days a week.

Regional tensions have increased after the United States and Israel attacked Iran on February 28. Tehran then retaliated by attacking Israel and US allies in the Gulf region.

According to Anadolu Agency, the conflict also disrupted the Strait of Hormuz, an important route through which about 20 percent of the world's oil shipments pass.

This increase marks a change in the Indian government's attitude after oil companies were said to have suffered huge losses due to the surge in global energy prices. Previously, Modi asked residents to save fuel, including by working from home.