Amid Israel-Iran war, will inflation in India rise if Tehran closes Strait of Hormuz? Report claims…

The ongoing war between Iran and Israel caused sharply increased crude oil prices. This increase can be for India. If global oil prices continue to increase, gasoline, diesel and LPG prices in India may also increase. This can lead to a new increase in inflation.

The Indian government closely monitors the situation in the Hormuz Strait, a vital way to about 20% of the world oil supply. This Bosphorus is very important for oil exports from countries such as Saudi Arabia, UAE and Iraq. Iran threatened to block the Hormuz Strait, which could even disrupt the global oil supply/

According to the Navbharat Times report, India diversified the Indian oil resources to reduce dependence on West Asia. Reports say that India has recently increased oil imports from Russia. Since the beginning of the Ukrainian war, India has purchased more oil than Russia, which can help maintain stable supply even during geopolitical tensions.

However, the increase in raw prices pressure on oil marketing companies. While making less profit, changes in gasoline and diesel prices do not seem possible in the short term due to the latest adjustments in consumption tasks.

There are also increasing concerns about gas supply. Most of the natural gas of India comes from the Gulf countries. Depending on any deduction, pipe can increase gas and CNG prices and increase production costs for industries. Although retail inflation decreased to 2.8% in May – the lowest fuel prices increases in six years and can print on policy makers.