New Delhi, First Published Mar 2, 2022, 3:04 PM IST
It is expected that petrol and diesel price hikes will be implemented from next week after the 5th state elections.
The daily price hike will start from next week as crude oil prices have risen sharply and it is no longer possible to raise fuel prices.
Petrol and diesel prices have remained unchanged since November last year due to the 5 state elections. The 5 state elections will end on the 7th and the counting of votes will take place on the 10th. After that, the people must be prepared to face the increase in petrol and diesel prices.
This is because the price of crude oil in the international market has risen to $ 110 a barrel for the first time since 2014. Gas and crude oil production in Russia have been hit hard by the Ukraine-Russia war, and prices are rising for fear of severe shortages.
As of March 1, the price of crude oil in India had risen to $ 101 a barrel, the highest level since 2014. When petrol and diesel prices stopped rising in November last year, crude oil prices were at $ 81.50 a barrel. At present it has risen to $ 20, according to the Ministry of Petroleum’s Planning and Review Committee
At present, Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum are losing Rs 5 per liter on petrol and Rs 7 per liter on diesel as petrol and diesel prices remain unchanged. No profit is taken into account in this.
Therefore, after the election, petrol and diesel prices can be expected to rise by at least 10 per cent. This means that the price of petrol will go up by Rs 9 per liter to Rs 10 per liter.
If the central government thinks that people will not be able to bear the sharp rise in prices, it can reduce the excise duty on petrol and diesel to Rs 3 per liter. If so, the oil companies will have to raise petrol and diesel prices by up to Rs 5 per liter to make up for the loss.
Although Russia is the 3rd largest producer of crude oil in the world, India imports less. By 2021, India will have imported only 43,400 barrels daily from Russia. Coal imports are 18 lakh tonnes and imports 25 million tonnes of natural gas per annum.
Therefore, India is not directly affected. But there is no denying that the rise in international crude oil prices will certainly have an impact on the economy.
Last Updated Mar 2, 2022, 3:04 PM IST