Published On: Wed, Mar 2nd, 2022

Crude at $111: Domestic petrol, diesel prices to sky rocket

New Delhi: The Russia-Ukraine crisis-led global hike in crude oil prices is expected to push India’s domestic prices of petrol and diesel by Rs 20-22 per litre.

Consequently, crude oil prices have surged by nearly 15 per cent in the last two days on fear of tight supplies

However, an excise duty cut may dampen the impact on petrol and diesel prices to an extent, but not entirely.

The crisis as well as fears of lower supplies have pushed Brent crude oil price to nearly an 8-year high on Wednesday.

Besides, robust global demand is expected to keep the Brent index crude oil price high.

Consequently, crude oil prices have surged by nearly 15 per cent in the last two days on fear of tight supplies.

On Wednesday, the Brent-indexed crude oil prices rose to over $111 per barrel on Wednesday.

It had risen to $102 per barrel on Tuesday from Monday’s $98 per barrel mark.

At present, Russia is the third largest producer of crude oil in the world.

It is feared that sanctions against Russia will curtail global supplies and stifle growth.

On the other hand, India is a major crude oil importer in the world, and for it, the price range is a cause of concern as it may add Rs 20 to Rs 22 in petrol and diesel selling prices, if the OMCs decide to revise the current prices.

“The recent spike in oil prices may now held for Rs 20 per litre hike in domestic petrol prices if OMCs decide to raise fuel prices,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Lately, petrol and diesel prices have been largely stable over the past 3 months.

In January 2022, oil prices averaged at $85.5 per barrel. During that month, petrol and diesel prices in Delhi were at Rs 95.4 per litre and Rs 86.7 per litre, respectively.

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