International market Brent crude today touched a level of $ 138 a barrel due to Russia and Ukraine crisis. This is a nearly 14-year high for crude.
Petrol-Diesel Prices Outlook: After getting relief for about 2 months, now gear up for expensive petrol and diesel. International market Brent crude today touched a level of $ 138 per barrel due to Russia and Ukraine crisis. This is a nearly 14-year high for crude. American crude has also reached $125. On the other hand, due to the side effect of geopolitical risk, where the dollar index is beyond 99, the rupee has also come down to the low levels of 77 per dollar. At present, due to the supply disruption in the current situation of war, where there is an expectation of a rise in crude, the government can also start increasing the prices of petrol and diesel at the domestic level soon.
Crude 110% costlier in 98 days
In December last year, crude started showing a rise from the level of $ 65.80 per barrel. At the same time, since then the prices of petrol and diesel have not increased at the domestic level. Crude today crossed $ 138 a barrel since a low of 65.80 in December. Crude has become costlier by 110 per cent in just 98 days, but the prices of petrol and diesel are stable. Let us tell you that from December itself, the election environment started for 5 states in the country and during this there was relief in oil prices.
Petrol will be costlier by Rs 25 to Rs 30 this month!
Ajay Kedia, director of Kedia Commodity, says that crude is continuously boiling in the international market, while the dollar index has crossed the level of 99. In January this year, it was at the level of 94.62, that is, it has climbed 5 percent since January. The index has crossed the level of 99 for the first time since May 2020. On the other hand, the rupee has come down to 77 per dollar for the first time since April 2020 on futures. Forex reserves have also fallen. All these factors are indicating that the prices of petrol and diesel may increase rapidly. He says that the way these factors including crude are working, the increase in petrol and diesel in the country from Rs 25 to Rs 30 per liter is possible only in March. In bad condition, it can go up to Rs 150 per liter in some cities, where petrol is already selling beyond Rs 110 per liter.
Increasing pressure on balance sheet
IIFL VP-Research Anuj Gupta says that today Brent has reached his 14-year high. In 2022 i.e. this year itself, it has accelerated around 70 percent. Crude is getting costlier due to lower supply, geopolitical risk and unstable oil tanker position. Soon it can cross the level of $140 per barrel. mcx crude is trading at the level of Rs 8580. It has become more than 50 percent costly so far this year. He says that even after crude has become increasingly expensive, there has been no change in petrol and diesel in India for a long time. India imports more than 82 per cent of its crude requirement. On the other hand the rupee is depreciating. Due to all this, the pressure on the balance sheet is very high. It is possible that after the end of voting in the UP elections, there will be a sharp increase in the prices of petrol and diesel.
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