Crude oil prices have risen sharply due to sanctions imposed on Russia, the world’s largest crude producer.
In 2017, the union government gave oil companies the power to set petrol and diesel prices based on international crude oil prices. Thereafter daily petrol-diesel prices are fixed. As well as frequent price increases.
In this situation, the price of petrol has crossed Rs.100 and gone up to Rs.110 in the last few months. At the same time, the diesel price was close to Rs.100. Since then its price has come down slightly as taxes on petrol-diesel have been reduced.
Following Russia’s war on Ukraine, various countries imposed sanctions on the country. Crude oil prices have risen sharply due to sanctions imposed on Russia, the world’s largest crude producer. Crude oil is currently trading at $139 a barrel in the international market. India needs 35 lakh barrels of crude oil per day.
It has been reported that petrol-diesel prices in India will also go up as crude oil prices continue to rise in the international market and may rise after the 5th state elections.
Oil companies have been consulting on raising petrol and diesel prices. It seems that in this consultation it has been decided that the petrol-diesel price may be increased from Rs.5 to Rs.6.
In this context, the results of 5 state elections were announced yesterday. As a result, it seems likely that petrol-diesel prices will rise today.
It is said that the price of petrol and diesel can be gradually increased by as much as 50 paisa a day without raising it all at once.