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Indian standard crude oil prices rose to a 10-year high. Despite this, the prices of petrol and diesel remain stable in the country. According to the Petroleum Planning and Analyst Cell, the price of crude oil purchased by India rose to $ 121.28 per barrel on June 9.
This is a decade high since February/March 2021. Indian standard crude oil averaged $111.86 per barrel between February 25, 2022 and March 29, immediately after the Russo-Ukraine war. On the other hand, due to strong demand from major customers like America, crude oil in the global market reached a 13-week high on Thursday.
Decrease in futures price for July-August
In the global market, Brent crude futures for August declined by $ 0.81 to $ 122.26 per barrel. US standard crude oil prices declined by $ 0.79 to $ 120.72 for July. Retail prices in the country have remained stable despite volatility in crude oil prices. Indian Oil, Bharat Petroleum and Hindustan Petroleum are keeping the prices of fuel sold at petrol pumps below cost from November 2021. India imports 85 per cent of its crude oil requirements.
Companies lose up to Rs 21 per liter
Industry sources say prices at local petrol pumps are as per the norm of $85 a barrel. Oil companies have not raised prices to help the government control inflation. In such a situation, the industry is incurring a loss of Rs 18 per liter on petrol and Rs 21 per liter on diesel.
- Public sector oil companies are continuing their operations despite the loss.
- Private sector retailers such as Reliance-BP and Naira Energy have limited operations to cut losses.
- In some places, Naira is selling petrol and diesel at a price of three rupees a liter more than the government units.
Diesel price rise has a huge impact on inflation
Retail inflation hit an eight-month high of 7.8 per cent in April. The rise in the prices of fuel, especially diesel, has a cascading effect on inflation.