Fuel Price Hike Fear Grows After Russian Oil Waiver Ends

Russian Oil Waiver Ends, Fuel Price Pressure Rises

India may face fresh pressure on petrol and diesel prices after the United States allowed a key sanctions waiver on Russian seaborne oil purchases to expire. The decision comes at a sensitive time when global crude oil prices are already rising due to West Asia tensions and fears of supply disruption around the Strait of Hormuz. India has depended heavily on discounted Russian crude in recent years to reduce its oil import burden and protect domestic consumers from sharp global price shocks.

Crude Prices and Inflation Concerns

Petrol and diesel prices were recently increased by ₹3 per litre, marking the first hike in nearly four years. However, experts believe this increase may provide only partial relief to oil marketing companies if crude prices remain above the $90–100 range for a longer period. India imports nearly 85% of its crude oil requirement, making fuel prices highly sensitive to global market changes. If refiners face difficulty buying Russian crude due to sanctions risks, they may have to rely on more expensive suppliers.

Higher fuel prices can affect transport costs, food prices, airfares, logistics, and household expenses. If crude oil remains expensive and geopolitical tensions continue, another fuel price revision may become possible in the coming months. The article is based on India Today inputs.