Experts say that India’s domestic prices of petrol and diesel are expected to rise by Rs 15-22 per liter on account of global rise in crude oil prices due to geopolitical crisis. Petrol, diesel prices, which are deregulated and directly linked to international oil prices, are no longer revising for 124 consecutive days. The status quo remained with the assembly elections in Punjab, Goa, Uttarakhand, Manipur and Uttar Pradesh. Thus, it is widely expected that the OMCs will revise the existing prices on or after March 11, which is a day after the state assembly election results.
Analysts are of the view that crude oil and elections will have an impact on the price of oil, however, Roop Bhoot – CEO, Investment Services, Anand Rathi Shares & Stock Brokers said: “Crude oil prices fluctuate in global markets. Reaching new highs, one can expect some price hike in domestic markets. However, the government has several options for the same and can reduce the impact by adjusting taxes to control inflationary pressures. Is.”
However, reduction in excise duty may reduce the impact on petrol and diesel prices to some extent, but not completely. At present, India imports 85 per cent of its crude oil requirement.
government on price hike
Commenting on a decision on hike in petrol, diesel prices, Rameshwar Teli, MoS, Petroleum and Natural Gas said: The petroleum ministry decides the oil rate with the oil companies, it is yet to happen. People are aware that oil prices are rising in the midst of the ongoing war. Whenever the meeting takes place you (people) will be informed about the prices.”
Government Efforts
The central government had cut excise duty on 4 November 2021 to provide relief from prices that have reached an all-time high. The government had cut petrol by Rs 5 per liter and diesel by Rs 10 per liter, which brought down fuel prices significantly.
Following the path of the central government, many other states have also reduced the value added tax or VAT on the prices of petrol and diesel. In December 2021, the Delhi government reduced the value-added tax on petrol from 30 per cent to 19.40 per cent. With this, petrol prices in the national capital were reduced by Rs 8.56 per litre.
impact of crude oil
Global oil prices fell to the most in nearly two years, OPEC member the United Arab Emirates said on Wednesday, adding support to pump more oil into a market hit by supply disruptions caused by sanctions on Russia after the Ukraine invasion. did.
Brent crude futures settled $16.84 or 13.2 per cent lower at $111.14 a barrel, their biggest one-day fall since April 21, 2020. US crude futures were down $15.44, or 12.5 per cent, at $108.70, their biggest daily decline since November. ,
On Thursday, the rupee rose 42 paise to 76.20 against the US dollar in early trade. This was supported by positive domestic stock market and early trends in the assembly election results to be held on March 10.
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