Global oil prices hover close to $90 amid tensions in the Strait of Hormuz and attacks in the Red Sea, while India faces rising fuel costs due to international and domestic factors.
Global oil markets have tightened again as tensions around the Strait of Hormuz and attacks on shipping in the Red Sea keep traders on edge. Brent crude has hovered close to the $90-a-barrel mark, with analysts warning that any further disruption in the Middle East could send prices higher. The Strait of Hormuz remains one of the world’s most important energy corridors, carrying a large share of seaborne crude, while attacks linked to Yemen’s Houthi rebels have also pushed tankers on to longer, costlier routes.
According to AP, Brent briefly rose above $90 before easing back to $88.91, as investors weighed the fallout from conflict involving the US, Israel and Iran. The news agency reported that U.S. equities slipped from record highs as higher oil prices fed concern about inflation and the prospect of tighter monetary policy. The national average price of gasoline in the US has also climbed, adding to pressure on consumers and policymakers alike.
Energy-market watchers say the key question is whether the latest jump proves temporary or marks the start of a more sustained rally. Gulf News reported that Brent may need a prolonged disruption through Hormuz or clear signs of tighter global inventories to move decisively above $90. In the meantime, shipping costs and insurance premiums are rising, adding another layer of strain to the oil trade and to economies that depend heavily on imports.
India is especially exposed. Roughly 85% of its crude requirement is met through imports, so any sustained increase in global prices can widen the country’s import bill and eventually filter through to fuel costs. That risk comes even as national retail prices in key metros have stayed broadly unchanged for now, leaving households and businesses to absorb the impact only if international prices remain elevated for several more weeks.
In Himachal Pradesh, however, motorists are already paying more. The state government has introduced an orphan and widow welfare cess on petrol and high-speed diesel, lifting prices by 60 paise per litre. The move is meant to create a dedicated fund for orphaned children, widows and other vulnerable women, and officials have said the levy will be collected at the first sale point. In Shimla, petrol has risen to about ₹103.05 a litre from ₹102.45, a reminder that fuel prices are being shaped both by geopolitics abroad and taxation at home.
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