NEW DELHI: India's state-run oil companies raised petrol and diesel prices by more than 3% on Friday as disruption to energy supplies due to the Iran war mounts pressure on the economy, AFP reported.
The increase marks the first hike in automobile fuel prices in India since the start of US-Israel war on Iran in February.
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 liter 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.
Meanwhile, Mallikarjun Kharge, president of the Indian National Congress (INC) posted on X on Friday that the people of the country must understand that, alongside the current international fuel crisis, the major reason for the economic crisis in India is the leadership crisis in the Modi government, the lack of visionary thinking, and incompetence that is overflowing to the brim.
'Modi-Govt-Made crisis'
"This crisis is a Modi-Govt-Made crisis. The common people of the country are paying the price for it from their own pockets on petrol, diesel, and LPG," he further said.
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.
"When diesel prices rise, it creates a cascading effect of inflation across the entire country. From industries to household budgets and farmers—everyone is badly affected," the INC president said.
Further, Mallikarjun said in his post, 'When the West Asia War began, the country was told that “sab changa si” and the Congress party's questions were dismissed. No concrete steps were taken; instead, due to American “Permission” and “Allow,” our Sovereignty was put up as collateral'."
He said, "Now, as the crisis is escalating, Modi ji has started rattling the toy of Work From Home and fuel conservation."
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.
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 criticized "unilateral coercive measures", without naming any country.
