The growing crisis in the Middle East and high prices of crude oil may soon impact the pockets of common Indian consumers. If crude oil remains expensive and the supply of LPG remains limited, then everything from house painting to many everyday items may become expensive.
The costs of many consumer companies have already started increasing. Companies are in a dilemma whether to pass on the increased costs to customers or not. According to media reports, even if prices increase, they will increase after some time because companies know that customers will not be able to bear the higher prices immediately.
It has now been 15 days since the conflict involving Iran, America and Israel. According to Moneycontrol, if the price of crude oil remains above $ 100 per barrel, then inflation may increase in the financial year 2027. People will see more impact in these sectors.
paint
Chemicals made from crude oil are used extensively in making paint. About 60% of the cost depends on oil related products.
Therefore, if crude oil prices remain high for a long time, paint prices may increase by 2% to 5% from April. However, companies are still waiting till March so that the situation of oil prices can become clear.
cooking oil
India imports about two-thirds of its edible oil. Therefore, if there is a disturbance in international supply, prices may increase.
According to experts, if there is a problem on sea routes like Red Sea and Suez Canal, the oil consignment will arrive late and logistics costs will increase.
synthetic fabric
The raw materials used in making synthetic clothes are made from petrochemicals, which are prepared from crude oil. About 70-80% of the costs of this sector are linked to oil prices. Therefore, when oil becomes expensive, products like sports jerseys, yoga pants, carpets and industrial fabrics can become expensive.
packaged food
Palm oil prices have increased by about 4% in the beginning of March. This may impact the packaged food industry. Palm oil accounts for 1525% of the cost of namkeen companies and about 45% of the cost of biscuit companies.
air fare
Due to the crisis in West Asia, the prices of aviation fuel i.e. ATF have increased rapidly. For this reason, Air India, Air India Express and IndiGo have decided to increase fuel surcharge on domestic and international flights. Fuel surcharge will be imposed on domestic flight tickets, while additional charges have also been increased on some international routes.
personal care products
Personal care products like soap, shampoo and detergent also depend on chemicals made from crude oil. About 30-40% of their raw material cost is related to oil. Apart from this, plastics used in packaging like HDPE and PET are also made from petroleum. When crude oil becomes expensive, its price also increases.
automobile sector
If the war continues for a long time, prices may increase in the automobile sector as well. Many raw materials used in making tires such as synthetic rubber, carbon black and processing oil are made from crude oil. About 60-70% of the total raw material cost of the tire industry is related to oil. According to the industry, tire companies may increase prices by 1.5-2% by the end of this month, while prices of certain tires may increase by 3-8%.