trait of Hormuz Tensions Could Raise Petrol Prices, Expert Warns

Speaking in Chennai, economist Suriyanarayanan said the Indian economy remains closely linked to crude oil imports from West Asia, including countries such as United Arab Emirates, Iran and Saudi Arabia.

He said the ongoing conflict in West Asia has had a multifaceted impact on India, but the country has managed supply pressures by sourcing crude oil from other regions such as the United States and Argentina.

Suriyanarayanan stated that domestic fuel prices have remained stable due to government measures, including reductions in excise duty on petrol and diesel. However, he cautioned that prolonged conflict could still lead to price increases, especially if disruptions continue around the Strait of Hormuz, a key global energy corridor.

On gold prices, the economist said global uncertainty and fluctuations in the US dollar often drive gold higher. He added that once the war ends and uncertainty eases, gold prices are expected to stabilise.