Israel-Iran conflict: Crude oil cost hike may result in petrol, diesel price surge in India. Should you be worried?

The Israel-Iran conflict could impact your fuel bill significantly. The Middle East is one of the leading crude oil-producing regions in the world, and a conflict in that area could clearly result in the prices of crude oil being impacted. The conflict has already started impacting the global energy markets, sending oil prices soaring amid concerns that supplies from the West Asia region could be disrupted.

The price of the benchmark Brent crude surged by more than $6 to cross $78 per barrel on Saturday, owing to the conflict. This was a five-month high price for Brent crude. The surging crude prices mean higher fuel costs and an increase in the cost of freight as well. The price of petrol and diesel in India is directly connected to the global crude oil prices. A surge in the global crude oil cost could result in the oil marketing companies in India increasing the price of petrol and diesel in India as well, which will eventually impact the motorists' fuel bills.

The conflict is suspected to push the oil and gas prices in the near term. However, experts believe that it is unlikely to sustain price pressure on oil and is for the long term unless the conflict directly disrupts oil exports in the country.

Petrol and diesel prices in India are currently at a sky-high level. Petrol prices across different cities in India hover around ₹100 a litre, while the diesel price too is close to the century mark. In such a situation, another price hike for these motor fuels will certainly put more pressure on the motorists as well as on the overall economy.

A litre of petrol on June 15 costs ₹94.77 in New Delhi, while a litre of diesel costs ₹87.67 in the national capital. In Mumbai, a litre of petrol and diesel costs ₹103.50 and ₹90.03, respectively. In Chennai, a litre of petrol and diesel costs ₹100.80 and ₹92.39, respectively.

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