India’s state-run oil companies raised petrol and diesel prices by more than three percent on Friday as disruption to energy supplies due to the Iran war mounts pressure on the economy.
The increase marks the first hike in automobile fuel prices in India since the war broke out in February, prompting Iran’s near-total blockade of the Strait of Hormuz.
India, the world’s third-largest oil buyer, normally sources about half of its crude through the vital waterway.
In Delhi, petrol prices rose to 97.77 rupees ($1.02) per litre from 94.77 rupees, while diesel climbed to 90.67 rupees from 87.67, according to data from the Indian Oil Corporation.
Rates vary across the country depending on local taxes.
Oil companies say they have been incurring losses due to higher global crude oil prices.
The government had earlier raised prices of liquefied petroleum gas (LPG), a primary cooking fuel for millions of households.
The latest move comes as authorities ramp up austerity measures to curb fuel consumption and conserve foreign exchange.
Delhi’s chief minister on Thursday said government offices will have two work-from-home days a week for those able to and urged residents to cut back on private vehicle use.
The steps came after Prime Minister Narendra Modi said restrictions on fuel use were necessary to save foreign currency spent on fuel imports.
India has ramped up imports of Russian crude to plug gaps in supplies from the Middle East, ship?tracking and import data show, following a temporary US waiver on sanctions.
But with the waiver set to end on Saturday, Indian Foreign Minister Subrahmanyam Jaishankar criticised “unilateral coercive measures”, without naming any country.
“Such measures disproportionately affect developing countries,” he said on Thursday as he met foreign ministers from BRICS nations, including Iran’s Abbas Araghchi and Russia’s Sergey Lavrov — representing two of the countries most heavily sanctioned by the US.
“These unjustifiable measures cannot substitute dialogue, nor can pressure replace diplomacy.”
