Thread by @BiIndia

SIMPLY PUT: Will #Petrol Prices In India Stabilise Anytime Soon?

#FuelPriceHike #PetrolDieselPriceHike

Read: businessinsider.in/bi-newsletter

There are two things for certain that Indians are talking about this week – #PetrolPrice, and of course, the sweltering heat. After 9 out of 10 days of #FuelPriceHike, there are high chances that people might be talking about the fuel price rise more than the scorching sun.

Crude oil prices have been skyrocketing for several reasons that seem to be beyond the control of any country’s govt. Even the market can feel the impact of rising crude oil prices. The @StocktwitsIndia Stock Room Sunday episode discusses this in detail.

#FuelPriceHike

Since 2017, #petrol and #diesel prices have been revised on a daily basis by the public sector oil marketing companies. They determine the prices based on international crude oil prices, foreign exchange rates, tax structure, freight and other cost elements.

#FuelPriceHike

India depends heavily on crude oil imports, with some estimates pegging the number at over 80% of the country’s total oil needs. Lately, India has been importing crude from Russia, a country currently at war with Ukraine, and hit with sanctions from US and allies.

#FuelPriceHike

According to a BBC report, India bought around 12 million barrels of crude per day from Russia in 2021. Russia, which is bearing the brunt of heavy sanctions following its Ukraine invasion, has reportedly offered huge discounts to India for buying its crude.

#FuelPriceHike

This action has also invited a lot of flak on India’s stance in the ongoing #RussiaUkraineWar, even though it imports only a miniscule amount of its total oil needs from Russia at the moment.

#FuelPriceHike

There is another nation apart from India that may take advantage of the cheap Russian crude. As analysts believe, China could tap the discounted Russian crude market and purchase more oil from Russia.

#FuelPriceHike

Being the third largest oil importing nation, a fall in global oil prices will surely benefit India. And currently, there are two things Indians are eagerly waiting for – rains for respite from the rising temperatures and stability in petrol prices.

#FuelPriceHike