- Petrol and diesel prices will increase
- Impact of increase in crude oil prices
- What will be the impact on petrol diesel in India?
Petrol Diesel Price Hike: Concerns about petrol and diesel prices may once again be on the rise among the general public. Global crude oil prices have risen sharply. On August 20, Brent crude oil rose 2.4 percent to $93.78 a barrel, its highest level since July 24. US WTI crude oil prices also rose by nearly 2.5 percent.
Ethanol Policy: The Government's Big U-Turn? There will be a change in role…Decision on 25% ethanol blend in petrol delayed?
Why has crude oil become expensive?
One of the biggest reasons for the rise in crude oil prices is the rising tension between the US and Iran. US President Donald Trump has threatened to take tough economic measures against countries that support Iran. The US has also discussed imposing more sanctions on Iran. This has increased the fear in the market that this may affect the supply of oil in the coming days.
The biggest concern for the oil market is the Strait of Hormuz. The war has already reduced oil traffic through this route. Before the war, nearly one-fifth of the world's total oil consumption passed through this route. If supply is further affected, crude oil prices could be further pressured.
What will be the impact on petrol and diesel?
India meets a major portion of its crude oil needs through imports. Therefore, an increase in crude oil prices in the international market may put pressure on the prices of petrol and diesel in the country. However, a rise in crude oil prices does not necessarily mean an immediate rise in petrol and diesel prices in India.
Domestic prices are influenced by many factors such as government policies, taxes, margins of oil companies and international market conditions. However, if crude oil prices stay above $90 for a long time and continue to rise, it may become difficult to keep petrol and diesel affordable.
Petrol-Diesel Prices : Next few days are important… Big news regarding Petrol-Diesel prices, the picture will change in 10 days?
What is the biggest risk?
Currently, the biggest risk is supply. Rising tensions between the US and Iran have fueled fears that oil supplies from the Middle East could be cut even further. Oil prices have risen due to these concerns. The threat of supply disruptions in the Middle East is the main reason behind the continued rise in crude oil prices.
If tensions do not ease and crude oil prices continue to rise, in the coming days on petrol and diesel prices Pressure may increase. This means that there is currently more concern about rising crude oil prices than expectations of cheaper fuel prices.