International crude oil prices have crossed $93 per barrel. This is the highest price of crude in the last seven years. Crude prices continued to climb due to lower global supply than demand, rising tensions between Russia and the West and inclement weather in the US. Experts say that in view of strong demand, the price of crude may soon reach $ 100 per barrel. Only this year its price has gone up by about 20 per cent. The question is, if the price of crude continues to rise, what will be its effect on you? Let’s try to find out the answer.
Petrol and diesel will be expensive
Due to expensive crude, the prices of petrol and diesel may increase in India. This will increase your expenditure on fuel. However, for the last 69 days, the government has not changed the price of petrol and diesel. But, it may increase the prices in the coming days. It is believed that due to the assembly elections in five states, petroleum companies are not increasing the prices yet. The results of the assembly elections in these states will be out on March 10. After this the prices of petrol and diesel may increase.
Also read: Petrol Diesel Price Today: New rates of petrol and diesel released, know what was the price in your city
Inflation may increase
Expensive petrol and diesel will not only increase your fuel expenditure, it will also increase inflation. Especially diesel is used for freight transportation. Because of this, transport companies increase the freight fare when diesel becomes expensive. This increases the prices of most things including fruits and vegetables. Already inflation is increasing in the country. Retail inflation rose to 5.59 per cent in December. This is the highest in five months.
pressure on rupee against dollar
India imports about 80 per cent of its petroleum requirement. A huge amount is spent on importing petroleum. The government has to pay the price of petroleum mostly in dollars. Therefore, the effect of increasing the country’s petrol bill also affects the rupee. Higher demand for dollars puts pressure on the rupee. Rupee continues to depreciate against the dollar. On Monday it was at the level of 74.73. Last year on February 7 it was at the level of 72.78. In this way, it has weakened by more than Rs 2 in a year.
In November, the government had reduced taxes
The price of petrol and diesel has reached Rs 100 per liter in most cities of the country. On Monday, the price of petrol in Mumbai was Rs 109.98 per liter. The price of diesel there was Rs 94.14 per liter. Petrol in Delhi was Rs 95.41 and diesel Rs 86.67 per liter. In most states including Bihar, Bengal, Madhya Pradesh, the price of petrol is Rs 100 per liter.
In November last, the government had reduced the excise duty to give relief to the people from expensive petrol and diesel. Excise duty on petrol was reduced by Rs 5 per liter and on diesel by Rs 10 per liter. Since then, many states including Delhi had also reduced VAT in their respective states. Since then, the oil marketing companies have not increased the retail prices of petrol and diesel. If the government had not reduced the tax on petrol and diesel, the price of petrol in some states would have gone up to Rs 125 per liter.
,