The largest government-owned oil company in India, Indian Oil, has increased fuel prices for two specific industries effective this Friday. This will have a major effect on business owners and international travel companies.
The price of a 19 kg LPG cylinder, whose main buyers are restaurants, hotels and factories, has jumped by ₹993, bringing the new total to ₹ 3,071.5. This represents a massive 47.8% hike in one go, which will likely increase operating costs for many businesses. However, the prices of LPG cylinders remain the same for households.
Additionally, the company has raised jet fuel prices, but only for foreign airlines. Which means international jets flying out of India now have to pay more to refuel. But the good news is that Indian Airlines flying within the country will not face any price hike for the time being.
These price hikes are due to global events unfolding in West Asia. International oil prices have soared past $100 per barrel. This spike is largely due to the ongoing war involving Iran, which has led to the closure of the Strait of Hormuz. Since this strait is a vital shipping route for the world’s oil supply, its closure has made petroleum products much more expensive globally.
