Due to Iran-Israel tension, there has been a huge rise in the prices of crude oil and gas. The Indian basket has reached $146, due to which there is a possibility of increase in the prices of petrol-diesel, LPG and everyday items in India.
Iran-Israel-US War Global Impact: It has been 20 days since the US-Israel war with Iran in the Middle East. While the global supply of oil and gas has been disrupted due to the closure of the Strait of Hormuz, the prices of crude oil are also skyrocketing. After the worsening of the situation, the price of benchmark Brent crude has reached around $ 116 per barrel. At the same time, an increase of about 20% was seen in the prices of natural gas in Europe. The surge came after Israel attacked Iran’s South Pars gas field and Iran responded by damaging a major LNG hub in Qatar. After this, Iran also warned of serious impact on the global energy market.
Gas became expensive in America also
According to AAA report, the price of gas in America has increased to $ 3.88 per gallon. This is an indication that this tension is affecting not only the Middle East but the entire world.
Crude oil prices rose by 30% on March 19
On March 19, after new attacks by Iran on the energy bases of Gulf countries, a rise of up to 30% was recorded in the prices of crude oil and gas in the global market. Before the war started, Brent crude was below $ 73 on February 27, which has now increased to around $ 116 per barrel.
Indian basket crosses $146
Crude oil prices in India have almost doubled to $ 146 per barrel. India imports about 85% of its crude oil and more than 50% of its gas requirement, hence fluctuations in the global market have a direct impact on the country’s economy.
How expensive can petrol and diesel become?
If crude oil prices remain at this level, it will be difficult for government oil companies to sell petrol and diesel at the current rates. In the coming time, the prices of petrol and diesel may increase by Rs 10 to 15. Also, due to shortage of gas, the prices of LPG cylinders may also increase. Recently the price of domestic LPG cylinder was increased by Rs 60.
Inflation hit: Food items will also become expensive
Crude oil is not only used as fuel but also in the manufacturing of paint, plastic, fertilizer and medicines. Due to diesel becoming expensive, the cost of transport will increase, due to which the prices of fruits, vegetables and grains can also increase. This will have a direct impact on the budget of the common man.
Three major benchmarks of crude oil
Crude oil prices in the world are mainly determined by three benchmarks:
- Brent Crude: Originates from the North Sea (Europe) and is most commonly used in the global market.
- WTI (West Texas Intermediate): America’s main standard, known for its purity.
- OPEC Basket: The average mix of oils produced by OPEC countries.
What is Indian Basket?
India buys different types of crude oil from different countries like Iraq, Saudi Arabia, Russia and UAE. The average price of all these oils is called ‘Indian Basket’. This reflects the real cost of oil for India.