The Ministry of Finance is taking stock of the situation to understand the impact of Israel-Iran tensions on the Indian economy, officials said here today.
"There are concerns over an increase in global oil prices," said an official.
Earlier, Commerce Secretary Sunil Bharthwal said that whenever such conflicts occur, the department monitors the trade and conducts stakeholder consultations to study the impact that has come on the back of the Russia-Ukraine war, the Red Sea crisis and the blockage in the Panama Canal.
While India has kept retail prices of petrol and diesel frozen for two years now, any escalation of the conflict could make imports more expensive as India is one of the largest consumers of crude oil and imports 85 per cent of its requirements.
"An increase in crude oil could add to inflationary pressures," the official added.
Brent Crude for June delivery rose 46 cents, or 0.5 per cent, to $90.56 a barrel by 0005 GMT. U.S. crude futures for May delivery rose 43 cents, or 0.5 per cent, to $85.84 a barrel.