India fuel prices rise after Middle East oil shipping disruption
Fuel prices in India have gone up for the third time in just over a week, with gasoline and diesel now costing 5% and 5.49% more in Delhi since May 15.
These hikes are linked to a global oil supply crunch caused by ongoing conflict in the Middle East, which has disrupted a major shipping route for oil.
Government cites smallest increase outside Gulf
Even though crude prices shot up worldwide, India kept fuel rates steady for 76 days, longer than any other big economy.
The government says its just under ₹5 per liter increase is actually the smallest among major countries (outside the Gulf), especially when you look at Pakistan's 54.9% jump or the United States's 44.5%.
They also point out previous tax cuts and efforts to keep prices manageable, absorbing huge revenue losses to soften the blow for consumers.