Rising global crude oil prices and disruptions in energy supply chains linked to geopolitical tensions in the Middle East could lead to higher medicine prices in India within the next month, according to a senior executive from Mankind Pharma Ltd.

Arjun Juneja, Chief Operating Officer of the New Delhi-based pharmaceutical company, said the industry has so far been shielded from the full impact of rising input costs due to the use of previously stocked inventories. However, he warned that the situation is expected to change in the coming weeks as energy-related shortages begin to affect manufacturing operations.

Juneja stated that the pharmaceutical sector is likely to experience cost pressures within 15 to 20 days to a month, driven primarily by shortages of liquefied petroleum gas (LPG) and other petroleum-based inputs essential for producing active pharmaceutical ingredients (APIs) and finished drug formulations. He made the remarks in an interview with NDTV Profit.

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He explained that crude oil and petrochemical derivatives play a critical role in pharmaceutical manufacturing, serving as raw materials for a wide range of drugs, solvents, and packaging materials. Products such as benzene, toluene, ethylene, and propylene—derived from petroleum refining—are widely used in the production of APIs, as well as in medical plastics used for syringes, IV bags, and packaging materials.

According to the report, global crude oil prices have surged significantly amid disruptions in supply routes and infrastructure across key energy-producing regions, including concerns surrounding maritime transit through the Strait of Hormuz. The resulting volatility has contributed to inflationary pressure across multiple industries, including healthcare and pharmaceuticals.

Juneja further cautioned that the supply chain situation is unlikely to stabilize in the near term, estimating that normalization could take anywhere from six months to a year depending on geopolitical developments and global energy market adjustments. He added that sustained cost escalation could eventually be passed on to consumers in the form of higher medicine prices.

Mankind Pharma, which manufactures both prescription medicines and over-the-counter healthcare products, produces a wide range of offerings including contraceptives, pregnancy test kits, acne treatments, and other consumer health products, making it one of India’s prominent pharmaceutical companies exposed to fluctuations in raw material costs.

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