Amid escalating global energy tensions, including the closure of the Strait of Hormuz, which has disrupted international oil and LPG supplies, India has hiked its fuel prices. Higher fuel costs tend to decrease consumer confidence, which results in lower spending on nonessential items and creates a slowdown in economic growth." "The government can decide through its subsidies and tax cuts whether fuel prices will increase or remain high for several months. "With tensions around the Strait of Hormuz threatening global oil flows, India has moved decisively to shield its economy. "And, with four state elections never too far away, keeping fuel prices stable is as much smart economics as it is smart politics because nothing travels faster than inflation, except voter sentiment," he adds.

Source: dna April 01, 2026 09:41 UTC