Rising Oil Costs Push Consumer Prices Higher

07-Apr-2026 04:10 PM

Mumbai: A renowned company engaged in the manufacturing and trade of consumer products states that if global market prices for crude oil remain within the range of $100–110 per barrel, and futures prices for crude palm oil in Malaysia persist between 4,500–4,800 Ringgit per tonne, the prices of consumer products in India could witness an increase of 6 to 9 percent.

The crisis in West Asia has not yet subsided; a fierce conflict involving Iran, the United States, and Israel remains ongoing. Shipping traffic through the Strait of Hormuz remains restricted, disrupting petroleum supplies and keeping prices anchored at elevated levels.

Similarly, consumer product prices are likely to rise due to the high cost of palm oil derivatives—a key input used in the manufacture of soaps and personal care products—coupled with increased packaging costs linked to crude oil and a simultaneous rise in transportation expenses.

While demand for FMCG products had begun to show signs of recovery following the government's reduction in GST rates during the final months of last year, this new challenge is now set to exacerbate the difficulties faced by these companies.

On the previous day, Brent crude oil futures rose to $109.13 per barrel, while Malaysian palm oil futures surged to 4,812 Ringgit ($1,195.53) per tonne.