Rising crude oil prices linked to the ongoing Middle East conflict have begun to impact inflation in India, leading to higher costs across multiple consumer-facing sectors since early March. Expenses related to air travel, LPG, hotel food, petrol and diesel, and food delivery services have increased, placing pressure on household budgets. Experts attribute the price rise to elevated crude oil prices and stress in international supply chains.
Air travel costs have increased following fuel surcharge revisions by airlines. Air India implemented a fuel surcharge of ₹399 per ticket on domestic flights effective March 12. For international routes, a surcharge of up to $200 (approximately ₹18,324) has been introduced.
IndiGo also revised its fare structure by introducing additional charges across routes. The airline has imposed ₹425 per sector for domestic flights within India and the Indian subcontinent, ₹900 for Middle East routes, ₹1,800 for Southeast Asia and China, ₹1,800 for Africa and West Asia, and ₹2,300 for Europe.
Akasa Air introduced a fuel surcharge ranging from ₹199 to ₹1,300 on both domestic and international flights effective March 15, directly increasing passenger travel costs.
LPG prices have also been revised upward. Domestic LPG cylinder prices increased by ₹60 in March, while the booking interval has been extended to 25 days. Commercial LPG cylinder prices have also risen, increasing input costs for hotels and restaurants. As a result, several establishments have raised menu prices, contributing to higher consumer spending on food.
Fuel prices have seen adjustments as well. According to oil company data, premium petrol variants such as Speed and Power have been increased by ₹2.09 per litre. Industrial diesel prices have risen by ₹22.03 per litre and are now priced at ₹109.59 per litre. This category of diesel is primarily used in heavy transport vehicles and industrial machinery.
Petrol prices across states currently stand at ₹109.31 per litre in Andhra Pradesh, ₹92.66 in Arunachal Pradesh, ₹98.81 in Assam, ₹106.95 in Bihar, ₹94.77 in Delhi, ₹94.49 in Gujarat, ₹103.62 in Karnataka, ₹106.08 in Kerala, ₹104.64 in Maharashtra, ₹102.18 in Tamil Nadu, and ₹108.90 in Telangana.
Food delivery platforms have also adjusted pricing structures. Zomato has increased its platform fee per order by ₹2.40, raising it to ₹14.90. The increase follows rising operational costs linked to higher LPG and restaurant pricing, resulting in higher total order values for consumers.
The cumulative effect of these price increases has led to higher daily expenses. Increased airfares have raised travel costs for passengers, while higher LPG prices have increased household cooking expenses. Rising hotel and restaurant prices, along with higher petrol, diesel, and food delivery charges, have contributed to an overall increase in cost of living.
