Oil Price Hike: Major setback for common people. Ahead of Iran Israel war, everything is in trouble. The worsening situation in West Asia is directly affecting the markets for edible oil and dry fruits. In Dehradun, the price of refined oil has surged by 20 rupees per liter, while Iranian pistachios have seen an increase of up to 1,000 rupees per kilogram. If conditions do not improve, this inflationary trend may escalate in the near future.
Supply chain affected
Indeed, a significant portion of India’s palm oil supply is sourced from Gulf nations. Over the last two months, conflicts and tensions have disrupted the supply chain. Companies have gradually run down their existing inventories, and new shipments are arriving at elevated prices. This is directly influencing the market.
Refined oil from reputable companies, which was priced between 150 to 160 rupees per liter just two months ago, has now climbed to 170 to 180 rupees per liter. The rising oil prices are particularly straining the monthly budgets of housewives. Additionally, hotel and restaurant owners are grappling with a worsening crisis. Following the gas shortage, the surge in oil prices has thrown the entire kitchen economy into disarray.
Market instability due to supply disruptions
Mohit Raghuvanshi, a businessman based in Doon, points out that the supply disruptions from Gulf countries have led to increased instability in the oil market. He warns that if normalcy is not restored soon, prices for refined oil could rise even further.
Not only oil, but Iranian pistachios are also experiencing a significant crisis. With supply reduced, pistachios have become pricier by up to 1,000 rupees per kilogram. Currently, they are being sold for approximately 3,400 rupees per kilogram in the market.
Inflation may increase in the coming days
The primary concern is that this inflation will not be confined to dry fruits or branded oils. Should the situation in the Gulf countries deteriorate further, it will also affect everyday food items, sweets, snacks, and the hospitality sector. Businesses anticipate that the cost of a meal may rise even more in the days ahead. Within a week, the price of edible oil has increased by 20 to 30 rupees per liter. Traders Jagdish Negi, Ramesh Singh, Suraj Joshi, Hem Parihar etc. said that inflation has started increasing gradually. The price of oil has increased.
The prices of other food items are also likely to increase in the coming time. It was told that mustard oil used to be available at Rs 150 to 170 per liter depending on the different varieties. Now it is available at Rs 200 per liter, up from Rs 160. Refined oil has increased from Rs 140 to Rs 150 per liter and sesame oil has increased from Rs 160 to Rs 180 per liter.
Amidst the fear of inflation, the District Supply Department has also become alert. To prevent oil hoarding, District Supply Officer KK Agarwal has issued strict instructions to regional supply inspectors. Officials have been clearly told to take immediate action if they receive complaints of creating artificial crises or black marketing.