MUMBAI: The Russia-Ukraine war could shoot up the prices of essential items in the country. The main challenge is the rise in fuel prices. The price of crude oil has crossed $ 100. This will lead to an increase in petrol and diesel prices by Rs 12 to Rs 14.

Fuel prices have not changed in the last few days as part of the ongoing assembly elections in the country. Meantime, the new crisis will be a major setback for the country, which has been expecting a rise in prices since the election.

A significant increase in fuel prices will create a crisis in all sectors. Specially the price of essential commodities will also rise proportionately especially as the cost of freight increases. This will lead to inflation. The Reserve Bank may raise interest rates if led to inflation.

The rise in fuel prices is expected to push up not only petrol and diesel prices but also LPG and kerosene. This will be a big challenge for the lives of ordinary people. Many thermal power plants in the country require liquefied natural gas. It will also lead to an increase in electricity prices.

Another setback is the increase in the price of wheat. Russia is the largest exporter of wheat in the world. Ukraine is just behind. When these two countries are in crisis, it will significantly affect the food sector of the world. Poor countries are more likely to starve.

Russia is the world's largest producer of palladium. Russia is also a major producer of aluminium, copper and cobalt. Therefore, metal prices are likely to rise in the current scenario. This will be a major setback for the industrial and automotive sectors.