India raises fuel prices by Rs 3 per litre for first time in over four years. Petrol in Delhi climbed to Rs 97.77 while diesel reached Rs 90.67, driven by soaring global crude oil prices and supply disruptions around the Strait of Hormuz. Economists warn the hike will add fifteen to twenty-five basis points to headline inflation and gradually push up transportation costs, impacting household budgets and essential goods prices. The move reflects the government's effort to manage mounting losses for state-run oil marketing companies and protect foreign exchange reserves amid West Asia geopolitical tensions. While the immediate inflationary impact remains moderate, second-round effects through higher logistics costs could weigh on overall consumer spending and cost of living in the near term.
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