War Impact Pushes Prices Up: Edible Oil, Packaged Water Likely To Get Costlier

Crude oil surge due to West Asia tensions raises packaging and input costs across FMCG sector

The ongoing conflict in West Asia has begun to impact everyday household expenses in India, with prices of essential items like edible oil and packaged drinking water witnessing a rise due to surging crude oil costs.

With Brent crude crossing $119 per barrel, the cost of petroleum-based raw materials and packaging has increased sharply, putting pressure on fast-moving consumer goods (FMCG) companies and distributors.

Packaged Water Prices Start Rising

The impact is already visible in bottled water prices. Market leader Bisleri has increased prices by ₹2 to ₹20 depending on pack size. A one-litre bottle has become costlier, while a two-litre pack now costs ₹30 compared to ₹27 earlier. A 500 ml bottle is now priced at ₹10, up from ₹9.

Smaller manufacturers have also raised distributor prices by around ₹1 per bottle, with further hikes of up to 10% expected in the coming days. Industry players warn that the retail impact will become more visible soon, especially as summer demand peaks.

Plastic Packaging Costs Surge

The rise in crude oil prices has directly impacted plastic packaging, which is derived from petroleum products. The cost of raw materials used for bottles has reportedly jumped by nearly 50%, reaching around ₹170 per kilogram.

Additionally, the price of bottle caps has more than doubled, while costs of labels, corrugated boxes, and other packaging materials have also increased significantly. This has created pressure across the bottled water supply chain.

Edible Oil Prices Also Increase

Edible oil prices have also started rising in response to global trends. For instance, an 800-gram pack of refined sunflower oil from leading brands has seen a price increase of around ₹20, now retailing near ₹180.

Palm oil prices have also risen by about 4–5% in recent weeks, which could further impact products like soaps and other FMCG goods that use palm oil as a key ingredient.

More FMCG Price Hikes Expected

Experts say the impact may extend beyond water and edible oil. Products such as detergents, shampoos, creams, and toothpastes may also see price increases, as they rely on crude-linked raw materials.

The paints industry, too, has indicated possible price hikes, as a large portion of its input costs — including resins, solvents, and binders — are derived from petroleum.

What It Means For Consumers

The rising cost of crude oil is now affecting daily-use products, and consumers may soon feel the impact across multiple categories. With input costs rising and demand increasing ahead of summer, further price hikes cannot be ruled out.

Disclaimer: Prices of consumer goods may vary based on market conditions and location. Readers are advised to check local rates before purchase.