NEW DELHI, SEPTEMBER 08: India is facing the prospect of a higher oil import bill and renewed inflationary pressure as international crude prices surged on Tuesday amid growing concerns over disruptions to global supplies due to escalating tensions in West Asia.
Brent crude futures rose more than 2 per cent to around USD 99 a barrel, while US West Texas Intermediate (WTI) crude gained nearly 3 per cent to about USD 94 a barrel.
The rise followed attacks on Saudi energy infrastructure and heightened tensions involving Iran and the US, triggering concerns over further disruptions to oil flows from the region.
India, the world's third-largest oil importer and consumer, remains particularly vulnerable to fluctuations in global crude prices. The country imports more than 88 per cent of its crude oil requirements, which is used as the primary raw material for producing fuels such as petrol and diesel.
A sustained rise in crude prices could increase India's import expenditure and put additional pressure on inflation, particularly through higher fuel and transportation costs.
The developments in West Asia are therefore being closely watched in India as any prolonged disruption to global oil supplies could further push up international crude prices.
