Due to the ongoing war in West Asia, there is a lot of fluctuation in the prices of crude oil. According to a recent report by ICICI Bank, crude oil prices may remain at the level of $ 80 per barrel in the financial year 2027. This price is much higher than last year’s average price of $66. However, considering the current tension, Brent crude has reached around $103 due to which uneasiness is being seen in the Indian market.
🗞️: Israel-Iran War Update: Bombing on many cities of Iran, price of crude oil crosses 100 dollars.
Key economic figures for FY 2027
The bank’s report warns that if the disruptions in oil supply are not resolved within a month, India’s growth rate may decline. It is possible for the government to manage the price of 80 dollars but the falling rupee has emerged as a big challenge. The key figures can be understood in the table given below.
Details Estimated figures FY 2027 Oil price $ 80 per barrel Previous average price $ 66 per barrel Recent high level (Peak) $ 103 per barrel Rupee price (vs dollar) Rs 92 to 94 Estimated GDP growth 7 percent
Latest updates on oil supply and inflation
The rising prices of crude oil are likely to have a direct impact on the kitchen and farming of the common man. Economic experts believe that due to instability in oil prices, inflation may increase by up to 20 basis points. Apart from this, some more important things are as follows.
The Petroleum Ministry has assured that there is adequate supply of crude oil in the country and there will be no shortage of oil at petrol pumps. About 60 percent of India’s energy imports come through the Strait of Hormuz where there is a tense situation at present. The opposition in Parliament has demanded discussion on energy security and the West Asia crisis. The stock market has also declined due to oil prices and global instability. This will also affect the fertilizer subsidy, which has been fixed at Rs 1.71 lakh crore this year.