A worry for every household is inflation. There is news of prices of several goods and services increasing ever since the war started. Even if one may not be directly consuming the product or service, there will be indirect effects, as there is a value chain involved. Besides, all markets are interconnected. After coming out from a year of benign prices, we could be moving into one where the supply shock of higher crude oil prices and supplies of petro products can upset consumer budgets. How has this played out so far?

When the war started, it was largely expected that it would end soon. However, it has not, and there is no clarity on how it would proceed. Meanwhile, there has been an impact on supplies and prices. The supply of gas and oil has been hampered due to the closure of the Strait of Hormuz. While the government has worked hard to ensure that supplies continue while also exploring alternative sources, higher prices are inescapable. Russia has been supplying us with oil. However, the discounts have dried up, as all countries are trying to source the same from Russia. Further, with shipping costs increasing as the price of crude oil remains high, there is a premium to be paid. Lastly, the cost of insurance has increased due to the war. All this has kept prices high even while physical supplies are being managed. In fact, the production of gas was increased by domestic companies once the war........

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