India hikes fuel prices as Iran crisis bites

The world’s third-largest oil importer announced increased fuel prices and austerity measures due to the energy crisis.India has raised fuel prices by about 3 percent as the energy crisis driven by the Iran war and closure of the Strait of Hormuz starts to bite on the economy.The government in New Delhi announced the 3 rupees ($0.03) per litre price hike on Friday, as it moved to offset losses triggered by the shortage of supply. Gasoline prices rose to 97.77 rupees ($1.02) a litre, while diesel climbed to 90.67 rupees ($0.94).Recommended Stories list of 3 itemslist 1 of 3Trump, Xi discuss Strait of Hormuz as Chinese vessels transit key waterwaylist 2 of 3Iran urges BRICS nations to condemn US-Israeli war aggressionlist 3 of 3Iran war day 77: Trump, Xi discuss Hormuz as Tehran rallies BRICSend of listIndia is the world’s third-largest oil importer, with 90 percent of the oil it consumes coming from overseas, and about half of its usual crude supplies transiting the Strait of Hormuz.This has seen the country heavily impacted by rising energy prices and supply disruptions from the US-Israel war on Iran.However, New Delhi had been avoiding hiking retail fuel prices, making it one of the last major economies to pass higher crude prices on to consumers.Fuel-saving as an ‘act of patriotism’The increases come days after Prime Minister Narendra Modi urged Indians to adopt voluntary austerity measures, calling on them to work from home whenever possible, limit travelling abroad, and reduce purchases of gold.Modi described saving fuel as an act of “patriotism” and encouraged greater use of public transport, carpooling, and lower fertiliser consumption.Opposition leaders noted that Modi’s appeal came after the conclusion of a key round of state elections and that fuel prices were kept unchanged during the campaign. The polls ended this month, with Modi’s BJP winning two of four states and expanding its influence.