The Russo-Ukrainian war threatens to increase global oil prices, which could cause gasoline and diesel prices in India to skyrocket. Things have changed since then for the better.
Commuters bracing for a big hike in gasoline and diesel prices can breathe easy, at least for a while. As international oil prices fell below the $100 mark on Tuesday, an immediate fuel price hike seemed unlikely. The center has ensured that it is closely monitoring the ongoing Russia-Ukraine war and its aftermath to implement ‘calibrated interventions’ aimed at keeping petrol and diesel prices under control.
Fears of a massive price hike in gasoline and diesel are almost inevitable after Brent crude oil prices hit a 14-year high of $139 a barrel last week. With no immediate sign of a cease-fire, international oil prices have skyrocketed since Russia’s invasion of Ukraine. Then, when the world’s largest oil importer China reported a Covid-19 resurgence, there were concerns about a major impact on oil demand.
India, which is the world’s third largest crude oil importer, has been preparing for the impact of these outbreaks. India relies heavily on oil imports to meet about 85% of its domestic demand. Reports suggest a spike between ₹10 and ₹15 per liter for gasoline and diesel. India’s oil companies have lost about ₹12-13 a liter, excluding marketing margins, for gasoline and diesel sales during this period.
Despite the increase in input prices of more than 60%, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have not changed petrol and diesel prices in the 131-day period. green. They are expected to adjust prices after council elections in five states close earlier this month.
On Monday, Oil Minister Hardeep Singh Puri said, “Oil marketing companies will make their decisions (on fuel prices). They will proceed once they can’t take it anymore. appropriate step.”
Finance Minister Pankaj Chaudhary said, “The government is closely monitoring these factors and developing geopolitical developments and will implement corrective interventions as necessary to protect the interests of the world. the interests of the people.”
The center reduced the excise tax on gasoline and diesel last November. The excise tax on gasoline has been cut by ₹5 per liter and equal to ₹10 for diesel to drop in price after prices hit an all-time high. Some state governments have also reduced VAT on fuel prices to ease consumer stress.
Date of first publication: March 16, 2022, 12:19 PM IST