Iran–US tensions hit India: Edible oil up 7%, appliances costlier by 15%

New Delhi, Apr 15 (BNP): Escalating tensions between Iran and the United States are beginning to impact everyday life in India, with rising crude oil prices triggering a broad-based increase in the cost of essential commodities and consumer goods. From kitchen staples to household appliances, prices are already climbing and are expected to rise further, putting additional pressure on household budgets.

Cooking Oil Prices Rise Amid Import Dependence
One of the earliest visible impacts has been on cooking oil prices, which have increased by over 7%. India meets nearly 57% of its edible oil demand through imports, making it highly vulnerable to global supply disruptions. Key oils such as palm, soybean and sunflower have been directly affected. The surge in crude oil prices has also raised transportation and logistics costs, further inflating retail prices.

FMCG Products Under Pressure; Shrinkflation Returns
Daily-use FMCG products, including soap, shampoo and biscuits, are also witnessing price pressures. Companies are either increasing prices or resorting to “shrinkflation”—reducing product quantities while maintaining the same price—to offset rising input costs. Higher energy prices have pushed up raw material and packaging expenses.

Consumer Durables Turn Costlier
Consumer durables such as air conditioners, refrigerators, washing machines and LED televisions have recorded price increases of up to 15%. The rise is attributed to higher costs of metals, components and logistics, all linked to the spike in global crude oil prices.

Wider Impact Across Sectors
Beyond FMCG and appliances, sectors such as textiles, paints and plastics are also witnessing increased production costs. Industry experts warn that if geopolitical tensions persist, inflationary pressures could intensify in the coming months.

Outlook
Economists caution that continued volatility in crude oil prices may sustain upward pressure on costs across sectors, affecting both businesses and consumers. Further price hikes cannot be ruled out if supply chain disruptions deepen.