India, Cambodia raise fuel prices as Middle East tensions persist

Rising crude prices driven by the Middle East crisis have pushed fuel hikes across South and Southeast Asia, with India and Cambodia raising petrol and diesel prices this week amid inflation concerns.

In India, petrol and diesel prices were increased again on Tuesday. State-run oil marketing companies hiked rates by around 90 paisa per liter (about 1 US cent), according to The Indian Express.

The latest increase comes just five days after fuel prices were raised by 3 rupees per liter (3.6 cents). This marks the first hike in more than four years and brings the cumulative increase to nearly 4 rupees per liter (4.8 cents) this month.

In Delhi, petrol now costs 98.64 rupees per liter ($1.18) and diesel 91.58 rupees ($1.10), while petrol prices crossed 107 rupees per liter ($1.28) in Mumbai and Bengaluru.

Indian oil companies attributed the increase to surging international crude prices and mounting losses on domestic fuel sales as tensions around the Strait of Hormuz intensified fears of supply disruptions.

Officials told broadcaster NDTV that public sector retailers Indian Oil, Bharat Petroleum and Hindustan Petroleum had been absorbing heavy losses by keeping retail prices unchanged despite rising import costs.

Industry estimates suggest the companies were collectively losing more than $120 million daily before the latest revisions.

Meanwhile, Cambodia has also revised fuel prices upward in response to volatile global energy markets, according to the Phnom Penh Post.

Under the latest pricing, regular gasoline increased from about $1.28 to $1.35 per liter, while diesel rose from roughly $1.13 to $1.15 per liter.

Cambodian authorities said the increase reflects higher international oil prices and growing concerns over disruptions to global crude supply routes linked to the Middle East conflict.

As Cambodia imports nearly all of its fuel requirements, domestic prices remain highly sensitive to global market fluctuations, the newspaper reported.