Because of the Russia-Ukraine Struggle, the worth of crude oil continues to rise within the international market. Regardless of this, as a result of meeting elections in 5 states, the worth of petrol and diesel has not elevated within the Indian marketplace for 4 months.
ICICI Securities mentioned in a report that government-owned retail oil corporations have been struggling heavy losses as a result of rising international crude oil costs within the final two months. Home oil corporations should enhance the costs of petrol and diesel by Rs 12.1 per liter on or earlier than March 16, 2022 solely to cowl the price.
ICICI Securities says that including the revenue, they should enhance the worth by Rs 15.1 per liter. It has been mentioned within the report that India imports 85 % of its crude oil requirement. Due to this fact, the costs of petrol and diesel on the home stage are influenced by the worldwide costs of crude oil.
…then revenue could lower by Rs.10.1
The report mentioned that the web revenue of retail oil corporations has reached minus Rs 4.29 per liter as of March 3, 2022, as a result of no enhance in costs since Diwali within the home market. If the costs of petrol and diesel aren’t elevated, then the web revenue of those corporations on the present international worth can attain beneath zero Rs 10.1 per liter by March 16 and Rs 12.6 per liter by April 1, 2022.
Crude at 9 yr excessive
Within the international market, crude oil had risen to $ 120 per barrel. That is its 9 yr excessive. Nonetheless, after this, with some softening in costs, crude oil got here right down to $ 111 per barrel. Regardless of this, the hole between the price of oil and retail gross sales charges is widening.
Crude could attain $185
Morgan Stanley says that as a result of sanctions of America and European nations, Russia just isn’t capable of export oil freely. Proper now it’s exporting solely 66 % of the oil. If the availability of oil from Russia continues to be disrupted, then crude oil within the international market can attain $ 185.
Value elevated by Rs 35.89 in 4 months
Based on the Petroleum Planning and Evaluation Cell (PPAC), the worth of crude oil that India buys elevated to $ 117.39 per barrel on March 3, 2022. This worth is the very best since 2012. In early November final yr, when the rise in petrol and diesel costs was stopped, the common worth of crude oil was $ 81.5 per barrel. On this method, the worth of crude oil has elevated by Rs 35.89 in 4 months.