About 72 hours ago, crude oil from Gulf countries was less than $72 per barrel. Everyone felt that there would be a further decline in the prices of crude oil. Many brokerage firms and experts around the world had started reducing crude price estimates by 2 to 3 dollars per barrel. Besides, it also started improving the ratings of those countries which are more than 70 percent dependent on crude oil imports. If we talk about India, some experts had also said in their report that the government will start reducing the prices of petrol and diesel from the second half of August. Who knew that the game would change completely again.
Due to the end of the ceasefire between Iran and America, no agreement on peace talks and the start of war between Iran and America once again, the prices of crude oil have increased again. In the last 72 hours, crude oil prices have seen an increase of 10 percent. Where crude oil from Gulf countries is trading at more than $78 per barrel. Which had crossed the level of $ 80 per barrel on Wednesday, on the other hand, American crude is trading at the level of $ 74 per barrel after crossing the level of $ 76 a day earlier.
On the other hand, if we talk about India, once again after the rise in the prices of crude oil and increase in geo-political tension, the possibilities of reduction in the prices of petrol and diesel have reduced significantly. Also, due to rising cost of crude oil, the problem of trade deficit and reduction in foreign exchange reserves has once again arisen in the country. However, there has been no change in the prices of petrol and diesel from the country’s petroleum companies on Thursday. Let us also tell you at what level crude oil is being traded in the international market and petrol and diesel in India?
Tremendous rise in crude oil prices
Oil prices rose more than a dollar a barrel in post-settlement trading after the US military launched new strikes on Iran on Wednesday. After US President Donald Trump threatened to launch new attacks on Iran on Wednesday night itself, both crude benchmarks closed at the peak of about two and a half weeks. Trump also said that the interim agreement to end the Iran war has “expired”, but he ruled out full-scale war.
If we talk about crude oil prices, the crude oil of Gulf countries is trading at around $79 per barrel with an increase of more than one percent. Whereas a day earlier, at the end of Wednesday’s session, Brent crude futures had increased by more than 5 percent and closed at $ 78.02, which had crossed the level of $ 80 per barrel during the trading session.
However, since July 6, the price of Brent crude has seen an increase of more than $9 per barrel i.e. about 10 percent. On the other hand, if we talk about American crude, it is currently trading at $74.48 per barrel with an increase of about 1 percent. Whereas a year ago the price of oil had reached a peak of $ 76 per barrel.
US Army statement
The US Army’s Central Command announced on Wednesday that it is launching new attacks on Iran with the aim of keeping the Strait of Hormuz open to traffic. A US official told Reuters that the ongoing US strikes against Iran are expected to be bigger than those carried out on Tuesday. Iranian media reported explosions in Bandar Abbas, Abu Musa, Bushehr and other parts of the country. These latest attacks have occurred due to increased tension after Iranian attacks on ships in the Strait of Hormuz.
After this, America withdrew the relaxation given in sanctions on Iranian oil sales, which was agreed upon in the interim agreement between the two parties last month. Iran said on Wednesday that it had attacked US military bases in Bahrain and Kuwait, in response to which the US retaliated.
Before the Iran war, one-fifth of the world’s oil supplies passed through the strait, and Tehran’s control over the route has been its main strength in the conflict, which began with US and Israeli air strikes against Iran on February 28. Following the attacks on two tankers on Tuesday, maritime authorities raised the threat level to “severe” for ships passing through the strait.
price of petrol and diesel
The prices of petrol and diesel have remained stable since May 25. At that time, government oil marketing companies (OMCs) had increased the price of petrol by Rs 2.61 per liter and diesel by Rs 2.71 per liter. The price of petrol in Delhi remains above Rs 100 per liter at Rs 102.12, while diesel is being sold at Rs 95.20 per liter.
Even in Mumbai, petrol prices remain above the level of Rs 110. Here petrol is being sold at Rs 111.21 per liter and diesel at Rs 97.83 per liter. Petrol prices in other big cities like Bengaluru, Hyderabad and Kolkata are also above Rs 110 per liter. Diesel prices in these cities are less than Rs 100, except Hyderabad, where the price of diesel is Rs 103.82 per litre.
How are petrol and diesel prices decided in India?
Fuel prices at the pump are determined by several global, economic and domestic factors. The most important of these is the international price of crude oil, which is the main raw material for both petrol and diesel and which has the biggest impact on the final price paid by customers. The rupee-dollar exchange rate is also an important factor, because India is highly dependent on imported crude oil.
When the rupee weakens against the dollar, the cost of purchasing crude oil increases, which can directly increase the retail prices of fuel. Additionally, taxes imposed by the central and state governments form a major part of the final price, which is why petrol and diesel rates vary from state to state. Transportation costs and the current supply-demand situation also impact the retail price customers see at the pump.
