By Admin 
- Crude oil $92-95 per barrel, pressure on $100.
Petrol-Diesel Price Hike: Amidst the war in Iran and ongoing tension in West Asia, the prices of petrol and diesel in India have been increased a total of 4 times in the last month. After this increase, petrol and diesel have become costlier by Rs 7.5 per liter overall. After a long gap of last four years, this increase in prices was done due to tension in the Middle East.
However, despite this increase in prices, government oil companies are still incurring a loss of about Rs 5.5 per liter on petrol and about Rs 4.5 per liter on diesel. Including these, companies are still incurring a total loss of more than Rs 550-600 crore every day, which is not good in the long run.
Will there be another increase of Rs 5?
ICRA and financial analysts believe that if oil companies have to reach ‘no profit, no loss’ situation, then another increase of Rs 5 per liter in retail prices may be required. Analysts are calling this increase necessary, but the government is avoiding allowing the full increase to oil companies immediately to keep inflation under control at the retail level. As an alternative, the government has also tried to handle this burden itself by making some cuts in excise duty.
crude oil prices
India imports about 85% of its crude oil requirement from abroad. Currently Brent crude is around $92-95 per barrel. This price level is fine for Indian oil companies. In such a situation, they do not feel any immediate need to increase the retail prices. Pressure on oil companies to increase prices comes when crude oil crosses $100 per barrel and remains at that level for several weeks. There is no such serious situation right now.
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