Business Desk, Crude Oil Price: On Monday, September 7, the first trading day of the week, a rise in the prices of crude oil is being seen in the international market. Crude oil prices had increased last week also. This week has also started on a positive note. At 8:10 am on Monday morning, the futures price of WTI crude oil reached $ 92.064 per barrel and Brent Crude reached $ 96.834 per barrel.
Amidst the increasing tension in West Asia, there is a fear that if the pressure on supply increases, the price of crude oil may cross $ 100 per barrel. In such a situation, the biggest question is what effect it will have on the prices of petrol and diesel in India.
Why the rise in crude oil prices?
The increasing tension in West Asia is considered to be the main reason behind the rise in crude oil prices in the international market. Due to increasing attacks between America and Iran, the possibility of oil production and supply being affected for a long time has increased. The news of attacks on each other's oil tankers by both the countries has also increased the concern of the market.
US Energy Secretary Chris Wright has warned Iran that US troops will remain in the Middle East and the campaign against Iran will continue. Amidst these developments, a rise of more than 12% in crude oil prices has been recorded in just one month.
Should the prices of petrol and diesel change in India or not?
Despite the rise in crude oil prices in the international market, there has been no change in the prices of petrol and diesel in India this month. Even last month, the prices of petrol and diesel remained stable.
That is, at present the direct effect of increase in Crude Oil Price is not visible on domestic fuel prices. However, if crude oil prices remain high in the international market for a long time, further pressure on petrol and diesel prices may increase.
Today's latest rates of petrol and diesel
According to the data given on Monday, petrol in New Delhi is Rs 102.12 and diesel is Rs 95.20 per liter. In Mumbai, petrol is priced at Rs 111.21 and diesel at Rs 97.83 per litre, while in Gurugram petrol is priced at Rs 102.97 and diesel at Rs 95.64 per litre.
In Bengaluru, petrol is priced at Rs 110.82 and diesel at Rs 98.77 per litre, in Bhubaneswar petrol is priced at Rs 108.97 and diesel at Rs 100.68 per litre. In Chandigarh, petrol is priced at Rs 101.54 and diesel at Rs 89.47 per litre, while in Hyderabad petrol is priced at Rs 116.15 and diesel at Rs 104.23 per litre.
Why is concern increasing for India?
India imports crude oil on a large scale for its energy needs. In such a situation, the country's import bill may increase with the increase in the price of crude in the international market. If oil supply is affected due to tension in West Asia.
If prices remain high for a long time, its economic pressure on India may increase. There is a possibility of increase in transportation and production costs due to expensive crude oil, which may also impact inflation in future.
Can petrol and diesel become expensive?
At present, there has been no change in the prices of petrol and diesel in India, but if the prices of crude oil continue to rise in the international market, the pressure on domestic fuel prices may increase.
Especially if Brent Crude remains around or above $100 per barrel for a long time, both the cost of oil imports and inflation could become a matter of concern for India. However, when and how much the retail prices of petrol and diesel will change will depend on the pricing of oil companies and the decisions of the government.
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