If the Strait of Hormuz is closed, how much will the prices of petrol and diesel increase in India? The prices of these things will also be affected

Petrol Diesel Price: The Strait of Hormuz is one of the most important sea routes in the world. Any blockage in this narrow sea route immediately disrupts the global energy market, because a large part of the world’s crude oil passes through this route every day. Amid increasing tensions with America, Iran’s Islamic Revolutionary Corps has once again closed the Strait of Hormuz. In the meantime, let us see what effect this will have on global oil prices and how expensive petrol and diesel will become.

Why will oil prices increase?

The biggest reason for this is the increasing security risk for oil tankers. During times of military conflict or heightened tensions, shipping companies may try to avoid strikes, delays or navy sanctions. The cost of transporting oil also increases significantly. Shipping companies face higher freight charges and insurance premiums associated with war risks. This increases the total cost of each barrel delivered to international buyers.

Financial markets also react quickly to the possibility of a reduction in supply. Traders often drive up crude oil prices in anticipation of future disruptions, even before shortages occur. Due to this, prices increase rapidly in the global energy market.

What impact can this have on India?

India imports more than 85% of its crude oil requirement. A large part of it comes from Gulf countries, whose exports go through the Strait of Hormuz. If crude oil prices reach $150 to $200 per barrel, then petrol and diesel prices in India may increase by ₹20 to ₹30 per liter. This will depend on international prices, exchange rates, taxes and government policy.

This will not only affect transportation fuel. India also imports LPG and LNG in large quantities through this route. This means that the prices of cooking gas and industrial fuel may also increase.

Inflation may increase

Rising diesel prices increase transportation costs across the economy. Because most grains, vegetables, fruits and consumer goods are transported by trucks, the burden of rising fuel prices is often passed on to consumers through higher prices.

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