Reserve Bank Governor Warns of Possible Fuel Price Hikes Amid Prolonged West Asia Crisis

West Asia Crisis May Force Government to Hike Petrol and Diesel Prices

The Reserve Bank Governor Sanjay Malhotra has warned that the government may have to increase petrol and diesel prices if the West Asia crisis continues for a longer period. Malhotra made this statement at a recent conference in Switzerland, highlighting the government's efforts to remain fiscally prudent and on the path of fiscal consolidation.

The ongoing conflict in West Asia and the blockade of the Strait of Hormuz have severely disrupted oil and gas supplies, leading to a significant increase in energy prices. India, which is highly dependent on imports of energy and fertilisers, is beginning to feel the impact of these disruptions. According to Malhotra, if the crisis continues, it is only a matter of time before the government passes on some of these price increases to consumers.

The government has maintained the retail prices of petrol and diesel despite the West Asia conflict, which started on February 28. However, with the rupee witnessing a steep depreciation and trading below the 95 mark against the US dollar, the pressure to increase prices is mounting. Prime Minister Narendra Modi has called for reducing the use of fuel and consumption of edible oil, among other austerity measures, to save foreign exchange.

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| Comparison of Petrol and Diesel Prices | | --- | --- | --- | | Date | Petrol Rate in Mumbai | Diesel Rate in Mumbai | | Wednesday, 13th May, 2026 | | | | | | |

Note: The current petrol and diesel prices in Mumbai are not provided in the original text. However, I have included a table to facilitate a comparison, which can be filled in with the actual prices once available.