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FMCG players brace for oil shock as West Asia on boil
Financial Express Chennai
|June 14, 2025
HOUSEHOLD ITEMS SUCH as toothpaste, detergent bar and shampoo could become dearer if crude oil prices continue to rally the way they have, following an escalation in tensions between Iran and Israel.
Crude touched $78.5 to a barrel on Friday, up 13% versus Thursday's close—the single-biggest rise in over three years—data from Bloomberg showed.
For now, there seems to be no signs of a thaw in tensions between the two nations. And this could become a point of concern for user industries, including fast-moving consumer goods (FMCG) and paint companies, top executives said, as it will result in a spike in the prices of crude-linked derivatives used in making these products. Firms may have to consider price hikes to protect margins, coming at a time when urban demand is yet to recover, while rural demand is recovering after a slowdown earlier.
This story is from the June 14, 2025 edition of Financial Express Chennai.
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