A ₹ 15 Hike In Petrol, Diesel Prices Feared By Experts After A Four Month’s Pause
With assembly elections in five states – Uttar Pradesh, Punjab, Uttarakhand, Manipur, and Goa – concluding on Monday, the state-owned fuel retailers are gearing up to adjust the price according to the benchmark international rate in the preceding 15 days.
Highlights Of The Fuel News:
• Fuel prices have been frozen since 4 November 2021 due to assembly elections
• The crude oil price for India rose above $111 per barrel on 1st March 2022
• International oil prices shot up fearing disrupting of oil supplies or sanctions by western nations on Russia for invading Ukraine
• The decrease in the value of the rupee to 77.01 per dollar further escalated the crude oil prices
How Much The Oil Price Could Be Revised In India?
At the time of freezing of oil prices four months back, India was paying $81.5 per barrel. The oil companies today need at least a ₹ 15/liter increase to break even. But they are expected to increase the price by less than 50 paisa/liter every day instead of passing the entire loss to the consumers in one go.
How Much Crude Oil India Buys From International Market?
India meets about 85% of its oil requirement from the international crude oil market where prices have jumped to a 13-year high of $140/barrel. Heavy dependence on the international market makes India more vulnerable to a price increase. But today India is facing the double blow of Ukraine war and a weakening rupee.
How Is the Russian Invasion Of Ukraine Affecting The International Crude Oil Prices?
Russia produces one-third of Europe’s natural gas and 10% of global oil in the world but most of its oil and gas pipelines pass through Ukraine that is under attack by Russia. Western nations have imposed heavy sanctions on Russia and the world fears a disruption of oil production and supply due to sanctions and retaliation by Russia.