India Stockpiles Energy, Fertiliser Amid West Asia Tensions; Oil Prices Soar

India’s Ministry of Petroleum and Natural Gas secured additional crude supply contracts as tensions flare over the Strait of Hormuz, according to a statement released on October 22. The move follows a broader strategy that saw fertilizer companies buy surplus stock during a price dip, leaving the ministry with a cash cushion.

Freight rates have surged, with the Drewry World Container Index jumping from $1,746 on October 25, 2025, to $4,585 on October 22. Container freight to West Asian ports has leapt from roughly $800 a day to as high as $10,000, a figure quoted by Ajai Sahay, director‑general at Fieo.

Oil prices now hover at $120 a barrel for crude, $140 for petrol, and $154 for diesel, the highest monthly average in a decade. This spike erodes the rupee’s value and forces state‑run retailers to absorb losses, even after duty cuts.

A small shopkeeper in Delhi’s Karol Bagh market reports that diesel prices have risen by 12%, making it harder to keep the lights on during rush hour. The shopkeeper says “the price jump feels like a punch to the gut” and fears a slowdown in footfall.

The government is studying emergency fuel‑subsidy adjustments and potential fiscal tightening to keep the deficit within the 4.3% of GDP ceiling. A cabinet review is scheduled for early November, with the finance minister expected to outline the next fiscal package.