By Thursday, global crude oil prices had returned to pre-war levels. Benchmark Brent crude oil closed at $72 a barrel — the same price ($72.29) as on Feb. 27, the day before the conflict began. Following the US-Iran agreement and subsequent peace talks in Switzerland on June 17, the US lifted partial sanctions on Iranian oil exports. As a result, the number of ships passing through the Strait of Hormuz has begun to increase; About 80 ships have passed through there since Monday, though this is down from a daily average of more than 100 ships before the war. Despite the fall in crude oil prices, retail petrol prices are unlikely to come down till Dussehra.
**What is the possibility of relief in petroleum prices?**
According to energy expert Narendra Taneja, the crude oil being processed into products like petrol and diesel was purchased when the price in the international market was around $110 per barrel. For Indian refineries, the effective price was around $125 per barrel.
**When will petrol and diesel made from $72 crude oil reach the pumps?**
This will take about two and a half months. It takes 15-20 days to load oil at the ports of the origin country and another 55-60 days for the tankers to reach Indian ports. Additional time is required for transportation from ports to refineries and ultimately to petrol pumps. This entire process lasts for 75-80 days.
**So, will the price drop immediately after two and a half months?**
Its possibility is less. Oil marketing companies are currently incurring a loss of around ₹7.50 per liter on petrol and diesel. The government had earlier cut excise duty by ₹10 per litre; This margin can be used to cover losses for some time. The prices of petrol and diesel are likely to come down only after that period.
When can we expect relief?
Petrol and diesel prices are likely to start falling around Dussehra. Some relief can also be expected by the end of August or beginning of September.
Will crude oil prices rise again?
I don’t think crude oil prices will rise in the near future; Now this possibility is very less. A case has been registered against ‘Snap’, the parent company of social media app Snapchat, in Missouri, USA. In this case, it has been alleged that this platform is responsible for the rape of a 12 year old girl.
