West Asia War: As a massive importer of energy and petrochemical raw materials, India may face a trickle-down inflation effect where global supply chain disruptions are manifesting as higher price tags from essential fuels to household personal care items.
Aviation Turbine Fuel (ATF): Jet fuel process in India hit record, crossing Rs 2.07 lakh per kilolitre. As the West Asia war disrupted primary supply routes and refineries, the cost of ATF more than doubled. The spike has forced airlines to implement war surcharges, making domestic and international air travel significantly more expensive for Indian commuters.
Commercial LPG: While the government has moved to shield domestic households, the price of commercial LPG cylinders surged by nearly Rs 196 per unit this month. This hike is a direct result of global propane and butane shortages caused by the closure of the Strait of Hormuz, leading to higher dining-out costs across India.
Condoms: In a surprising turn, India’s $860 million condom industry is reeling from a “petrochemical shock.” Production requires ammonia (for latex stabilization) and silicone oil (for lubrication), both of which are sourced heavily from the Gulf. With ammonia prices expected to rise by 50%, manufacturers warn that retail prices for these essential health products must increase to maintain thin margins.
Oil: The price of cooking oils, particularly those linked to global bio-diesel demand, has climbed as crude oil becomes scarce. When mineral oil prices spike, international demand for vegetable-based bio-fuels rises, diverting edible oil away from food supplies. Major Indian FMCG brands have reported that packaging and raw material costs for oils have jumped by 20–25% since the conflict began.
Petrol And Diesel: To prevent widespread economic shock, the Indian government has largely shielded “regular” fuel prices through massive subsidies and excise duty cuts. While global crude prices have surged past $100 per barrel, regular petrol and diesel in Delhi remain steady at approximately Rs 94.72 and Rs 87.62 per litre respectively, despite state-run oil companies facing “under-recoveries” of over Rs 100 per litre on diesel.
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