India revised up the prices of petroleum and diesel on Saturday, already the fourth time in five days as a result of the global oil shortage triggered by the Ukraine crisis, according to the Indian authorities.
Since March 22, the price of petroleum and diesel across the whole country began to rise and was up by 3.2 rupees (around 4.2 US cents) per liter by Saturday.
Petroleum prices in New Delhi, India’s capital city, and Mumbai reached 99 and 113 rupees per liter respectively the same day.
Residents in New Delhi said they had no choice but to seek an alternative solution to cut down related expenses.
“Maybe because of the Russia-Ukraine conflict, oil prices have increased here in India. Since India can only produce 14% of the oil it needs and has to import the rest from abroad, oil prices have risen as a result. There is nothing we can do but to bear it,” said Satish Kumar, resident of New Delhi.
“We have to think about alternatives like battery, electronic vehicles, such kind of (these) things. I’m going to change my vehicle soon,” said Shastri, another resident.
According to India’s Transport Minister Nitin Gadkari, India imports 80% of the oil it consumes, and the global oil price hike caused by the Russia-Ukraine conflict has reached beyond the affordability of the Indian government.
Some residents also expressed concern that the increased oil prices may drive up the prices of daily necessities.
“The increase of oil prices will drive those of daily necessities like milk rises because the freight costs will be higher. Prices of all daily necessities that require delivery, like food, will go up,” said Shahid, resident of New Delhi.
According to an analysis by India’s central bank, the country is expected to lose 1 trillion rupees in fiscal revenue between 2022 and 2023 if the global crude oil price exceeds 90 US dollars per barrel. Every increase of 10 US dollars per barrel will tug India’s economic growth down by 0.2 to 0.3 percentage points.