Oil Price Hike: n the Middle East are gradually affecting households in India. This time, the concern extends beyond just LPG; even the most crucial kitchen staple, edible oil, is seeing a price hike. Oil is a key ingredient in a variety of dishes, including puris, parathas, samosas, and jalebis, as well as in everyday vegetable preparations across India. As a result, the increase in oil prices is having a direct effect on the finances of the average person.
What are the specifics?
Over the last month, edible oil prices have surged significantly. From February 24 to March 24, 2026, the price of sunflower oil jumped from Rs 175 to Rs 181 per kg. Palm oil also saw a Rs 5 increase, reaching Rs 141 per kg. Additionally, soybean oil prices rose by Rs 4 per kg, while peanut, vegetable, and mustard oils experienced a rise of about Rs 3 per kg.
Edible oil holds great significance in India, not just for its flavor but also as a crucial source of nutrition. It supplies essential fats, energy, and vitamins, particularly for individuals facing malnutrition. However, the challenge lies in the rapidly increasing demand for oil, which domestic production is struggling to meet.
In terms of usage, by the year 2022-23, the average urban Indian is expected to consume 12 kg of oil each year, while those in rural areas will consume around 11 kg. This is a notable increase compared to the much lower figures from 2004-05. To satisfy the rising demand, India imports about 56% of its oil, with only 44% being produced domestically.
Import statistics further highlight this reliance. In 2017, India imported oil worth $11.8 billion, which escalated to $21.1 billion by 2022. This amount is projected to slightly decrease to $18.6 billion in 2025. Palm oil represents the largest portion of these imports at 41%, followed by soybean oil at 35% and sunflower oil at 18%.
What the government said?
However, the government maintains that despite the current tensions with Iran, India’s oil supply is not significantly threatened. India imports oil from several countries, including Malaysia, Indonesia, and the United States, so if supplies from one country are affected, other options are available. Furthermore, to increase self-sufficiency, the government has launched the “National Mission on Edible Oils-Oilseeds,” which aims to increase oil production in the country in the coming years.