Crude Oil Supply Issues Push Up Plastic Costs; Water Bottle Prices Rise
March 13, 2026
Vadodara: The impact of the ongoing Gulf War has begun to affect the supply of crude oil, leading to a shortage in the country and triggering a ripple effect across petrochemical products. As a result, the price of plastic granules used in manufacturing water bottles has increased, prompting water bottle manufacturers to raise their prices.
Manufacturers have increased the price of a box of 12 one-litre water bottles by Rs. 20, a move that is expected to soon affect retail prices as well. With temperatures already soaring, consumers may soon have to pay more for packaged drinking water.
A city-based water bottle manufacturer said the price hike was unavoidable due to rising input costs. “Plastic bottles are made using polyethylene terephthalate (PET), which is produced through a petrochemical process from crude oil. Due to reduced crude oil supply in the country, the prices of PET granules have increased significantly,” the manufacturer explained.
Plastic pellet manufacturers have also raised their rates, further increasing production costs for packaged drinking water companies.
PET, a member of the polyester family, is widely used for manufacturing food and beverage bottles. The material is 100 percent recyclable, but its production remains closely tied to crude oil availability.
Mineral water manufacturers determine distributor prices based on their production costs. Currently, one-litre bottles are typically sold in the range of Rs. 10 to Rs. 20, depending on the brand and distribution network.
However, with rising raw material costs, industry players say retail prices are likely to increase in the coming days. The price of smaller bottles, including 200 ml packs, is also expected to rise. DeshGujarat
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