Russia-Ukraine War: Know how much the 'fire' in crude oil will scorch India

Russia-Ukraine War: Know how much the ‘fire’ in crude oil will scorch India

[ad_1]

new Delhi. Crude oil has risen due to Russia’s attack on Ukraine and it reached $100 per barrel on Thursday. This is the first time since 2014 that crude oil has scored a century. The impact of the rise in crude oil will be on India and this will increase the cost of many companies.

India imports 85 percent of its crude oil consumption. Now when the price of crude oil reaches $ 100 per barrel, the prices of petrol and diesel will increase in the domestic market. Its effect will be on many things and inflation will increase.

Also read: Russia Ukraine Crisis: Many commodities including Gold-Crude are expensive amid Russia’s attack on Ukraine’s capital Kiev

Oil prices may rise

The free-on-board (FOB) price of the Indian basket of crude oil stood at $94.68 per barrel on February 16. The Indian basket has a mix of Oman and Dubai. Here, there has been no increase in the prices of petrol and diesel in the Indian market since November 3. It is believed that after the results of assembly elections in five states on March 10 and now in view of the huge jump in crude prices, government companies will increase the prices of diesel and petrol.

inflation will rise

If there is an increase in diesel prices, the cost of freight will increase. This will increase the total cost of various types of goods and the general public will get all kinds of goods at expensive prices. There is already an upward trend in the retail inflation rate. This will also have an impact on India’s current account deficit. In the Economic Survey 2021-22, it was told about the increase in imported inflation risk.

What happens is that when the price of crude oil increases in the global markets, the risk of imported inflation increases. However, the monetary policy of the Reserve Bank of India (RBI) and the Budget 2022 did not raise much concern about the prices of crude oil. The budget and the RBI had projected the average price of crude to be $ 70-75 per barrel this year. But, his guess has now been ruined.

Also read: Emergency fund is useful in bad times, know how to prepare it for future

Along with the transportation cost due to increase in fuel rate Passenger fare will also increase, Effect of hike in transportation fare From fruits and vegetables to manufactured goods It will affect the price of Rs. This will increase consumer price index based inflation. This will have a direct impact on the budget of the common man.

Tags: Crude oil, Crude oil prices, Russia, Ukraine

[ad_2]

Read Article in हिन्दी

Leave a Comment

Your email address will not be published.