Rising Costs: How Global Tensions Are Impacting Consumer Prices

As global tensions escalate and crude oil prices soar, consumers are bracing for price hikes on essential goods. Items like biscuits, soap, and cooking oil are expected to become more expensive, with companies in the FMCG sector already considering price adjustments. Reports indicate that palm oil prices are rising, impacting major food brands and soap manufacturers. Experts suggest that companies may reduce package sizes to maintain price points while larger packages could see direct increases. The paint industry is also feeling the pinch, with significant raw material costs linked to crude oil. This article delves into the implications of these trends for consumers and businesses alike.

By Narendra Chaudhary Apr 7, 2026, 12:17 IST

Impact of Global Tensions on Prices

New Delhi: The ongoing global tensions and surging crude oil prices are set to directly affect your wallet. Prices for everyday items such as biscuits, soap, cooking oil, and even household paint are expected to rise. Particularly, due to increased costs associated with packaging and petroleum products, companies producing FMCG (Fast-Moving Consumer Goods) and consumer durables (like TVs and refrigerators) are contemplating price hikes.

According to reports, some companies, including ‘Lahori Jeera’, have already raised prices on select products since the beginning of the month. A report from ‘Nuvama Equities’ indicates that edible oil manufacturers have increased prices by 4-5 rupees per liter. Additionally, due to the rising costs of palm oil, food companies such as Bikaji, Britannia, and Nestlé may also raise their prices this quarter.

For the past seven to eight years, palm oil prices have fluctuated alongside crude oil prices. Consequently, the increase in palm oil costs could pose challenges for soap manufacturers like HUL and Godrej, as palm oil is a crucial raw material for them.

Preparation for Price Adjustments
Zydus Wellness CEO Tarun Arora stated that the longer the tensions in West Asia persist, the more likely it is that prices for various goods will continue to rise. He mentioned that companies might respond by reducing the weight of smaller packages, meaning the price remains the same, but the quantity decreases. In contrast, larger packages may see direct price increases.

Inflation's Impact
The ongoing conflict in Iran is likely to have a direct effect on consumer spending. Prices for biscuits, soap, oil, and paint are expected to rise, with FMCG and consumer durables companies preparing for price increases. The cost of edible oil has already risen by 4-5 rupees per liter, and companies like Bikaji, Britannia, and Nestlé may increase prices this quarter. HUL and Godrej are also preparing to raise soap prices.

Gas-Based Plant Challenges
The report also highlights that several packaged food companies in the country have either halted or reduced production at plants reliant on LPG.

Impact on the Paint Industry
Approximately 40% of the raw materials used in the paint industry are linked to crude oil, so the rising crude prices are beginning to affect this sector as well. Berger Paints, Kansai Nerolac, and JSW Dulux raised their prices last month, while Asian Paints may increase prices by 6-8% in the coming days. According to reports, companies may face profit pressures in the first quarter of the fiscal year 2027 (Q1 FY27).