When crude oil prices rise, the impact goes beyond the petrol pumps. For Indians, it means increased travel expenses, rising grocery prices and savings being squeezed.
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The import bill for crude oil in India has increased by 46.3% to $90.6 billion between April – September 2026 compared to the corresponding period in the previous year. The increasing tensions in West Asia and the issue of oil supply have been adding fuel to fire.
On October 23, the Brent crude was priced at $116.72 per barrel, whereas US WTI crude was priced at $103.27 per barrel.
Petrol and diesel may burn a bigger hole in your pocket
An increase in the price by Rs 5 per litre and consumption of 50 litres per month means an additional Rs 250 expenditure. This implies an extra Rs 3,000 per year despite no extra travel.
However, higher crude prices do not automatically mean an immediate increase in petrol and diesel prices. Government taxes and oil companies' pricing decisions also matter.
Your grocery bill could rise
Fuel is one of the primary expenses in the transportation of vegetables, milk, rice, and other essential products. In case diesel is expensive, the transporter may require more money to transport the commodities from the farm or factory to the market.
Cooking gas and other essentials
Increased cost of energy internationally may also affect LPG, plastic bags, paints and other petroleum products. Prices of LPG, however, depend on several factors and don't necessarily increase with increased cost of crude oil.
When crude crosses $110, the real burden on Indian households comes from several small price increases adding up to one big financial strain.
How to handle price hike?
You should track your expenses and curate a list of your essential and non-essential spending every month. If your budget is tight, you may consider lifestyle adjustments such as cutting on subscriptions, dining out or shopping. While these measures may cause temporary inconvenience, they may help you save significant amount of money over the long term.
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