Brent cod crosses 5 115, crude price in India may rise by Rs 20-25 next week, find out its election connection
Brent crude hit dollar 115 a barrel in global markets on Thursday due to the Russia-Ukraine war. The price of petrol-diesel in India is likely to go up in the coming days. There has been no increase in petrol-diesel prices in the country for the last 120 days. While the price of Brent crude has risen by about 70 per cent.
he Modi government did not increase the price of petrol and diesel before the Assembly elections. However, as soon as the election is over, it does not hesitate to increase these prices. Assembly elections are currently being held in five states, including Uttar Pradesh. Its results will come on March 10. Due to this, prices are expected to rise from next week. Experts say that if petrol-diesel prices do not go up all at once, they will go up a little bit every day.
Anuj Gupta, vice-president, IIFL Securities, said Brent crude had crossed 11 115 a barrel in the international market. Oil companies, on the other hand, have not changed the price of petrol since November 3. So far, however, Brent crude has risen above 40 40 a barrel. This could lead to an increase in petrol-diesel prices by up to Rs 20-25.
March futures for crude oil on the MCX rose 4% to Rs 8,600 a barrel on Thursday. Crude opened at 8495 (11 112.21) and hit a high of 8677 rupees (114.62). The average price of crude in December 2021 was close to 73 73. At that time, crude oil companies were making an extra profit of Rs 8-10 per liter.
The stock market crashed on February 24, 2022, shortly after Russia’s invasion of Ukraine. The price of gold has risen and crude oil has reached record levels. Russia is a major producer of oil and natural gas. According to the BP Statistical Review, in 2020, Russia was the second largest producer of crude oil and natural gas condensate.
India is dependent on other countries for more than 85% of its crude oil supply. About half of Russia’s oil exports – about 2.5 million barrels per day – are shipped to European countries, including Germany, Italy, the Netherlands, Poland, Finland, Lithuania, Greece, Romania and Bulgaria. However, India imports very little crude from Russia.Experts believe that the government may reduce the excise duty on petrol and diesel to curb inflation. In the first wave of Corona, the central government had twice increased excise duty on petrol and diesel by Rs 15 per liter.
How is the price of petrol-diesel determined? Until June 2010, the government fixed the price of petrol and changed it every 15 days. After June 26, 2010, the government left the pricing of petrol to the oil companies. Similarly, the price of diesel was also fixed by the government till October 2014. However, since October 19, 2014, the government had also handed over the work to the oil companies.
