Due to the ongoing conflict between America and Iran, the prices of crude oil have increased rapidly. However, India has – for now – largely shielded its population from the full impact of the situation. In the same context, Krishna Srinivasan, Director of Asia and Pacific Department of IMF (International Monetary Fund), warned that if this trend continues, India’s economy may face instability. As a result, there may be a need to consider increasing the prices of petrol and diesel in the near future.
What did Srinivasan say?
Krishna Srinivasan participated in an event organized by the National Council of Applied Economic Research (NCAER) on May 5. During the event, he discussed the potential impact of rising crude oil prices on consumers. He said that if petrol and diesel prices are not adjusted upward – despite the rise in crude oil prices – the entire burden will fall directly on the market. He further said that if the prices of fertilizers are reduced, the financial pressure on the population will be reduced.
What are the current prices of crude oil?
Due to the ongoing tension between Iran and America, the supply of crude oil is being disrupted. As a direct result of this, crude oil prices have been rising steadily. Currently, Brent crude is trading above US$ 110 per barrel, while India’s crude oil basket was around US$ 118.70 per barrel on April 30.
Supply disruption due to tensions in the Middle East
It is worth noting that tensions have been increasing in the Middle East since February 2026. Due to this situation, not only the prices of petrol and diesel have increased, but the prices of commercial and domestic gas have also increased. Moreover, people across the country are facing shortage of these things. Given this situation, this latest statement from the IMF will definitely create great concern among the population.