Petrol price | Major decision to be taken by Modi government.. Important update on petrol price..!
Petrol price | Decision to be taken by Modi government
After the war in Ukraine Russia became India’s main supplier of crude oil and has been saving its economy by selling crude oil to India and Russia at discounted price. In this situation India used this discount to increase its import of Russian crude oil from 2 percent before the war to 46 percent
At this stage India is dependent on foreign crude oil imports and therefore has to maintain good relation with all the major suppliers . To do this, India is now forced to make a major change in the measurement of its crude oil purchases from Russia
In June India imported 2.2 million barrels of crude oil per day. KPLER reported that it has imported 1.5 million barrels of crude oil from Russia alone . As India nears its upper limit, it is forced to take a crucial decision. Russia alone accounted for 46 percent of total imports in May
In this scenario India will have to reduce its imports of Russian crude oil from next month. In line with this Russia has reduced its supply to the international market, thus forcing India to buy crude oil from Saudi Arabia, Iran and the United Arab Emirates. As of April India bought Saudi crude oil at $86.96 a barrel while Russia’s crude oil price was $68.21 a barrel
Chances of petrol and diesel prices falling in the country will disappear
In this situation if India and Russia buy crude oil from other countries the chances of petrol and diesel prices falling in the country will disappear
Indian Oil and Reliance Industries are buying most of Russia’s crude oils in India. Currently WTI crude oil price is 70.37 USD Brent crude oil is 75.16 USD Murban crude oil price is 75.87 USD and OPEC crude oil price is 74.14 USD
The central government held a major consultative meeting to decide on gas and fuel price changes.
In this meeting there is a possibility that not only the price reduction of petrol and diesel but also the purchase of more than 50 percent of crude oil from Russia will be discussed
If the central government decides to buy more crude oil from Russia i.e, more than 50 percent limit, petrol and diesel prices will come down in the next few days