Across South and Southeast Asia, consumers are facing the brunt of rising crude oil prices, a direct consequence of the ongoing crisis in the Middle East. This week, both India and Cambodia have announced significant increases in petrol and diesel prices, fueling concerns over inflation in the region.
In India, state-run oil marketing companies implemented another round of price hikes on Tuesday. According to The Indian Express, petrol and diesel rates saw an increase of approximately 90 paisa per liter, equivalent to about 1 US cent. This latest adjustment follows closely on the heels of a 3-rupee per liter increase just five days prior, marking the first such hike in over four years. Cumulatively, fuel prices in India have now risen by nearly 4 rupees per liter (4.8 cents) this month.
The impact is palpable in major cities. In Delhi, petrol is now priced at 98.64 rupees per liter ($1.18) and diesel at 91.58 rupees ($1.10). Meanwhile, in bustling metropolises like Mumbai and Bengaluru, petrol prices have soared past 107 rupees per liter ($1.28). Indian oil companies have attributed these increases to the sharp surge in international crude prices and the substantial losses they were incurring on domestic fuel sales. Tensions surrounding the critical Strait of Hormuz have further exacerbated fears of potential supply disruptions, adding pressure to global markets.
Officials speaking to NDTV revealed that public sector retailers, including Indian Oil, Bharat Petroleum, and Hindustan Petroleum, had been absorbing considerable losses by maintaining stable retail prices despite the escalating import costs. Industry estimates painted a stark picture, suggesting these companies were collectively losing upwards of $120 million daily before the recent price revisions.
Concurrently, Cambodia has also adjusted its fuel prices upwards, responding to the volatile nature of global energy markets, as reported by the Phnom Penh Post. Regular gasoline in Cambodia has seen an increase from approximately $1.28 to $1.35 per liter, while diesel prices have moved from roughly $1.13 to $1.15 per liter. Cambodian authorities have explicitly linked these increases to higher international oil prices and growing anxieties over potential disruptions to global crude supply routes, directly stemming from the Middle East conflict. Given that Cambodia is heavily reliant on fuel imports, its domestic prices remain acutely sensitive to fluctuations in the international market.
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