The Russia-Ukraine conflict will make coal, fuel, cooking gas and edible oil costlierThe ongoing Russia-Ukraine conflict will push energy and edible oil prices higher in India and, in turn, push up inflation, which is already above the upper end of the RBI's target.India imports nearly 80% of its oil needs and faces the risk of inflation hitting consumer demand as global crude prices rose above $100 a barrel to multi-year highs.
Reserve Bank of India's analysis shows that every $10 rise in crude prices adds about 0.5 per cent to inflation.What the Russia-Ukraine conflict could mean for India and what gets costlier for you if the crisis continues?A spike in fuel prices:This will push up your budget for fuel as petrol and diesel prices are set by oil companies based on global crude costs.Whilethe government has not raised petrol or diesel prices with rates static for the longest duration,leading into the elections in several states, energy costs in India are set to rise after those elections unless the government decides to absorb those costs.Edible oil will get costlier: There will be a jump in edible oil, an essential ingredient in Indian kitchens.Rise in natural gas rates:Rise in natural gas rates and coal: This will add to your cooking gas bill and eat into your monthly budget.
Electricity charges will also rise on higher coal prices.Travel and transportation costs will rise: Energy prices are directly proportional to global crude costs and, in a spiralling impact, will push up the prices of all products, such as vegetables, fruits and consumer products.