Crude Oil Prices Hike: Crude oil will be the most expensive after 2022, the price can reach 150 dollars.
The US-Israel-Iran war has taken the prices of crude oil in the international market to the highest level in three and a half years. Today, on March 9, it increased by 25% to $116 per barrel. Earlier, due to the Russia-Ukraine war in 2022, crude oil had crossed $100.
- Virtual closure of the Strait of Hormuz
The biggest reason for the increase in crude oil prices is the closure of the Strait of Hormuz, a 167 kilometer long waterway connecting the Persian Gulf to the Arabian Sea. Due to the Iran war this route is no longer safe. Due to danger no oil tanker is passing through it.
20% of the world’s petroleum passes through this route. Countries like Saudi Arabia, Iraq and Kuwait also depend on it for their exports. India imports 50% of its crude oil and 54% of its LNG requirements through this route. Iran itself exports through this route.
- attacks on oil refineries
In response to US and Israeli attacks on Iran, Iran has carried out drone attacks on oil sites in Qatar, Saudi Arabia and Kuwait. These attacks have forced these countries to reduce production. Iran’s Revolutionary Guard Corps has threatened to target other energy plants in the area.
- Crude oil increased by 60% in 10 days
Brent crude oil has increased by more than 25% today to reach $116 per barrel. Since the war started on February 28, crude oil has become costlier by almost 60% in 10 days after the war started. Earlier, it had crossed $100 in 2022 during the Russia-Ukraine war.
Experts believe that oil prices could reach $150 per barrel. This may affect the prices of petrol and diesel in India, due to which the prices may increase by Rs 5 to 6 per liter. However, the Indian government says that it has plenty of oil.
According to a report, this backup is enough to run the entire supply chain of the country for 7 to 8 weeks. Even if the supply stops completely. This means that there is no particular worry of shortage of petrol, diesel and other petroleum products in the coming days.
- India will be able to buy crude oil from Russia
US Treasury Secretary Scott Besant announced on March 6 that, under President Trump’s energy agenda, India is being given conditional exemption to buy crude oil from Russia.
For this purpose, the US Treasury Department has granted a 30-day special license to Indian refineries. This exemption has been given to maintain stable oil supply in the global market.
After the Russia-Ukraine war started, India started buying cheaper crude oil from Russia, but the US is pressurizing India to stop buying.
Last year, US President Donald Trump had imposed an additional tariff of 25% on India on buying oil from Russia. However, after the trade deal was announced this year, they removed this tariff. Trump had said that India will no longer buy crude oil from Russia.
- Petrol and diesel prices have been stable for four years
Petrol and diesel prices in India have been stable for the last four years. In contrast, petrol has become costlier in Pakistan by 55% and in Germany by 22%.
Domestic cylinder prices increased by Rs 60
Meanwhile, the government has increased the price of domestic gas cylinder by Rs 60. The price of 14.2 kg LPG cylinder in Delhi has now become Rs 913, which was earlier Rs 853. The price of 19 kg commercial cylinder has been increased by Rs 115. Now its price is Rs 1883. The increased prices have come into effect from March 7.
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