Oil coming from Iran will still be a burden on the pocket! This report of the government gave a big hint, petrol and diesel can become expensive by this much rupees.

Amidst the ongoing tension across the world, a worrying news is emerging for the common man. The increasing tension between America and Iran has created an energy crisis at the global level. While oil prices are skyrocketing in our neighboring countries Pakistan, Sri Lanka and Bangladesh, prices in India were stable till now. But now the latest signals from the government have increased the heartbeats of the people.

What is in the Finance Ministry report?

On April 29, the Finance Ministry released its monthly economic report. In this report, the Ministry has clearly indicated that the increase in the prices of petrol and diesel cannot be postponed any longer. According to the report, till now the government had not passed the burden of prices on the general public, but considering the global circumstances, it seems difficult to stop it for a long time.

How much strength is there in the opposition’s claim?

The interesting thing is that the opposition had already anticipated this increase. Congress leader Rahul Gandhi had claimed in the Lok Sabha that the relief given in oil prices during the elections in five states is only temporary. He had said that after April 29, the government will increase the prices. Now this report of the government has proved those claims of Rahul Gandhi true to a great extent.

Deal with Iran and support of Russia

India imports about 85% of its oil needs. According to the report, after seven years, India has made a deal with Iran for about 40 lakh barrels of crude oil, out of which 20 lakh barrels of oil has already reached the ports of Gujarat. Apart from this, India is also buying crude oil from Russia at a discount. At present, India is getting crude oil at an average price of $ 113 per barrel.

How much can the price of petrol and diesel increase?

Different experts have made scary predictions regarding the increase in prices:

• Kotak Institutional Equities: Petrol and diesel may become costlier by Rs 25 to 28.
• Macquarie Group: There is a possibility of a huge increase of Rs 18 in petrol and Rs 35 in diesel.
• standard Chartered: If crude oil remains at $95 per barrel, an increase of Rs 8 to 15 is possible.

However, Joint Secretary of the Petroleum Ministry, Sujata Sharma, has termed these news as mere rumors and said that the country has sufficient stock of oil.

Why are oil companies facing huge losses?

According to the report, due to rising prices of crude oil, government oil companies (IOCL, BPCL, HPCL) are facing huge losses. Every day during March these companies Rs 2,400 crore Have suffered loss. For every $10 increase in crude oil, companies are incurring a loss of about Rs 6 per litre.

Inflation hit: Your plate will be affected

Petrol and diesel being expensive does not just mean that driving is expensive. 70% of freight transportation in India is done by trucks. If diesel becomes expensive, transportation of fruits, vegetables and grains will become expensive, which will directly impact your kitchen budget. Apart from this, increase in online delivery and taxi fares is also considered certain. Experts say that in this situation people will increasingly turn to electric vehicles (EV).