2024-01-03 21:06:00
Oil Markets Unstable Due to War Situation in Russia-Ukraine and Israel-Gaza
As the war rages on in Ukraine and Gaza, the oil markets are facing extreme volatility. The Petroleum Minister, Hatip Singh Puri, has stated that oil companies will only be able to consider reducing the prices of petrol and diesel once the markets stabilize.
There is a growing expectation in India for the price of petrol and diesel to be reduced as crude oil prices fall internationally. Despite the decline in crude oil prices, the prices of petrol and diesel in the country remain unchanged. This has led to oil companies raking in a profit of Rs. 1.32 lakh crore. The Congress general secretary, Priyanka Gandhi, recently accused the government of burdening the common people with high fuel prices.
When questioned about consultations with oil companies to reduce prices, Union Minister Hadeep Singh Puri responded, “No such consultation is taking place now. Due to the war situation in two parts of the world, the oil markets are very volatile. Attacks on cargo ships in the Red Sea have further exacerbated the situation.”
The Red Sea and the Suez Canal are vital waterways through which a significant portion of global oil and natural gas flows. With such volatility, the primary focus is on ensuring fuel availability. Oil companies will only be able to make decisions on price reductions once the markets stabilize.
Additionally, concerns have been raised about potential problems with Russian companies due to the decrease in oil imports from Russia last December. However, Minister Hatip Singh Puri clarified that there is no issue with cash disbursement. “Crude oil is being imported from Russia at a discount price. It is normal for crude oil imports to be reduced when we do not get the expected discount. On the contrary, there is no problem of payment,” he explained.
As the war situation in various parts of the world continues to impact the oil markets, the future of fuel prices in India remains uncertain. The government and oil companies are closely monitoring the situation and weighing their options as they navigate through this period of instability.
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