2 hrs ago
Brent crude crosses $100, raising questions over India fuel prices
Brent crude is a global oil price measure, and it has climbed above $100 per barrel.
India buys most of its crude oil from other countries.
This means higher global prices can make fuel more expensive for India.
The government raised petrol and diesel prices in May, but pump prices have not changed since then.
Another increase has not been confirmed.
Higher costs could reduce the financial health of oil marketing companies.
Prices rose as hopes for a lasting agreement between the United States and Iran weakened and fighting resumed.
Iran also claimed it attacked ships near the Strait of Hormuz, adding to supply concerns.
Brent crude has risen nearly 30% since early August and crossed $100 per barrel.
India imports nearly 90% of its crude oil and 50% of its natural gas.
The government raised petrol by ₹7.35 and diesel by ₹7.53 per litre in May.
Pump prices have remained unchanged despite higher international crude prices, potentially hurting oil marketing companies.
Supply concerns linked to fighting and tensions in West Asia are driving India to diversify crude sources.
- Who
- India, Indian refiners, oil marketing companies, the United States and Iran are involved in the developments described.
- What
- Brent crude crossed $100 per barrel, raising questions about another increase in Indian petrol and diesel prices.
- Where
- The effects are centered on India and the international oil market, with supply concerns linked to West Asia and the Strait of Hormuz.
- When
- Prices have risen nearly 30% since early August; the government last raised fuel prices in May, and Iran made its ship-attack claim on Wednesday.
- Why
- Fading hopes of a permanent United States-Iran agreement, resumed fighting and threats to oil shipping have increased concerns about crude supplies.
Key facts
- Brent crude movement
- Prices rose nearly 30% since early August and crossed $100 per barrel.
- India's crude import dependence
- India imports nearly 90% of its crude oil needs.
- India's natural gas import dependence
- India imports about 50% of its natural gas needs.
- Last petrol increase
- Petrol prices rose by ₹7.35 per litre in four installments in May.
- Last diesel increase
- Diesel prices rose by ₹7.53 per litre in four installments in May.
- Crude import bill
- India's crude oil import bill rose 56.5% to $63.4 billion during April-July of the current financial year.
- Planned supply diversification
- Indian refiners plan to increase reliance on Russia, Brazil and some African countries.
Sources
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