India’s Refiners Are Absorbing the Hefty Cost of the Iran War

India’s efforts to shield consumers from a historic oil shock are reverberating through the refining sector, squeezing margins, stretching balance sheets and forcing companies into costly workarounds.

Since US and Israeli strikes on Iran began at the end of February, refiners in the world’s third-largest crude importer have had to contend with the effects of a sharp rise in prices, freight and insurance costs, all compounded by a weaker rupee. They have also had to scramble to find alternatives to Middle East cargoes.