Commodity prices, including fuel, have risen in India over the past few weeks as energy prices rose globally due to supply concerns after Russia’s invasion of Ukraine and demand hit by the COVID-19 pandemic. . petrol prices Delhi has seen a jump of Rs 8.40 in the last two weeks. CNG Rates Even after the last seven hikes, there has been an increase of around Rs 6.5 per kg.
After Russian President Vladimir Putin approved a special military operation in Ukraine’s Donbass region on February 24, Brent crude oil prices hit USD 100 a barrel for the first time since 2014. In the following days, US’ West Texas Intermediate crude futures also skyrocketed. 130.50 per barrel, the highest since July 2008, before retreating. Brent also touched a high of $139.13, which is also the highest level since July 2008.
On Monday, Brent crude futures fell US$1.01 or 1 per cent to $103.38 a barrel by 2223 GMT. WTI crude futures fell 84 cents, or 0.9 per cent, to $98.43 a barrel.
impact at home
The rise in global crude oil prices due to the Russo-Ukraine war has hit the household budget in India through the recent hike in petrol and diesel prices, costlier vegetables and electricity.
Petrol prices in Delhi have jumped by Rs 8.40 in the last two weeks, while CNG prices have also gone up by around Rs 6.5 per kg in the last seven days. Besides, costlier diesel, which has gone up to Rs 95.07 per litre, has pushed up the prices of various commodities due to higher transportation cost.
recently, lemon prices 200 per kg in Rajkot, Gujarat. “The price of lemon is touching Rs 200 per kg. Earlier it was around Rs 50-60 per kg. This is affecting our ‘kitchen budget’. Don’t know when the prices will come down,” news agency ANI quoted a customer in a market as saying.
Apart from this, milk prices have also increased in the last few weeks. Last month, companies like Amul, Parag and Verka hiked the prices of their milk by Rs 2 on costlier input costs. Jayan Mehta, Chief Operating Officer, Amul Milk & Milk Products, Chief Operating Officer, Gujarat Cooperative Milk Marketing Federation (GCMMF), said, “The price hike is being driven by increase in cost of energy, packaging, logistics, cattle feed. .’ Said.
According to a report by Krishi Jagran, the prices of cumin, coriander and chilli have also seen a jump of 40-60 per cent in the recent past. According to online travel agencies, higher global prices have also led to a nearly 30 percent increase in air travel tickets in the past month.
On electricity prices, rating agency ICRA said a sharp increase in domestic gas prices notified for H1FY2023 will lead to an increase in the variable cost of production for domestic gas-based power generation projects by more than Rs 2 per unit. The cost of production at the first notified price.
“Given the cost-plus nature of PPAs tied by gas-based power projects, the increase is expected to pass on to customers, primarily state distribution utilities,” ICRA said. The Asian spot LNG prices are at several decade highs compared to stated oil prices.
On domestic gas prices, the rating agency said the city gas distribution units may have to grade the price hikes, thereby completely reducing the cost and accordingly putting pressure on margins.
How long will the effect last?
In a research report, Japanese brokerage Nomura said that the RBI may re-evaluate its estimate for CPI inflation in the upcoming policy meeting. “However, RBI may suggest that inflationary pressures are temporary, that inflation will remain below its upper limit of 6 per cent,” it said.
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