India's Fuel Price Hike Sparks Economic Concerns

India has raised petrol and diesel prices for the first time in four years, marking an increase of 3 rupees per litre or more than 3%, as informed by dealers. The move aims to mitigate losses faced by the country's fuel retailers due to soaring global crude oil prices.

The price adjustment follows the ongoing disruptions in oil supply routes caused by the conflict initiated by U.S.-Israeli actions against Iran. The state-run Indian Oil Corp, Hindustan Petroleum Corp, and Bharat Petroleum Corp, which dominate over 90% of India's fuel stations, have coordinated the price setting.

Prime Minister Narendra Modi's government is rolling out austerity measures to counteract rising fuel consumption and import bills. These include encouraging fuel conservation, remote working, and limiting travel to preserve foreign exchange reserves amid heightened economic risks.

(With inputs from agencies.)