India Raises Gasoline and Diesel Prices by Over 3% Amid Iran War Fallout

Supply Instability Persists Despite Increased Russian Oil Imports
Consumption Curbs Through Higher Gold Tariffs and Expanded Remote Work

In the wake of the Iran war, global energy supply instability persists, prompting India to implement austerity measures such as fuel price hikes and an expansion of remote work.

On the 11th (local time), motorcycles formed a long line at a gas station in Mumbai, western India, experiencing oil supply disruptions. Photo by EPA Yonhap News

On May 15 (local time), state-run energy companies including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) announced that they had raised gasoline and diesel prices by more than 3%. In Delhi, gasoline rose by 3.2% to 97.77 rupees per liter, and diesel by 3.4% to 90.67 rupees per liter.

Since the outbreak of the Iran war in February, India had maintained retail fuel prices despite a surge in international oil prices. However, as state-run oil companies faced mounting deficits, the country raised prices for the first time. Authorities expect this will curb fuel consumption and reduce foreign currency outflows.

India, which relies on imports for about 90% of its oil demand, had increased imports of Russian crude oil to cope with the situation. However, with U.S. sanctions waivers set to expire soon, the country faces additional burdens. According to commodity data provider Kpler, India's imports of Russian crude oil averaged 1.98 million barrels per day in March, about double the pre-war level.

The Indian central and local governments are also expanding austerity measures. The New Delhi authorities have implemented two days of remote work per week for public servants and scaled back in-person events, recommending similar measures to private companies. In addition, import tariffs on gold and silver were raised to 15% in a bid to curb foreign currency outflows.

Indian Prime Minister Narendra Modi urged citizens to expand remote work and refrain from overseas travel and gold purchases, emphasizing that "saving fuel and securing foreign currency are acts of patriotism." On this day, the Indian rupee fell to a record low of 95.9350 rupees per U.S. dollar.

This content was produced with the assistance of AI translation services.