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Bottled Water Prices Poised to Rise as Oil Shock Hits Plastic

Higher plastic resin costs tied to oil are about to reach store prices.

Overview

  • U.S. prices are expected to start increasing in April after late‑February strikes on Iran prompted new limits on the Strait of Hormuz that disrupted oil flows.
  • Brent crude has climbed more than 50 percent since early March and bottle‑resin prices have jumped a little over 30 percent since late February, with plastic producers announcing hikes.
  • Syracuse University’s Patrick Penfield expects at least a 5 percent rise for plastic bottled drinks this month, with larger increases possible if crude moves higher.
  • India has already seen roughly an 11 percent rise in packaged drinking water prices as plastic input costs surged, with some bottles selling near ₹20 per liter.
  • U.S. shoppers may feel a slower or smaller hit because ethane and bottle making are largely domestic, yet analysts still see costs passing through into spring and summer.