Russia-Ukraine Crisis: Petrol Price Likely To Rise by Upto Rs 22
It is widely expected that the current crude oil prices in India will be revised on or after March 7, which is the last day of voting in the ongoing state assembly elections.
NEW DELHI — Hostilities between Russia and Ukraine, is expected to increase crude oil prices and consequently is expected to push India’s domestic prices of petrol and diesel by Rs 15-22 per litre.
Russia-Ukraine conflict, along with sustained demand, is expected to keep global crude oil prices in the range of $95-to-$125 per barrel in the short term.
It is widely expected that the petrol and diesel prices in India will be revised on or after March 7, which is the last day of voting in the ongoing state assembly elections.
“The fear of lower supplies with sanctions on Russia has weighed on upcoming supply from Iran. Crude oil prices may keep form trading range next week capping upside at $130 and support at $95 per barrel,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
“The higher oil prices has raised market expectations that govt of India may hike fuel prices post UP elections, expecting rise by Rs 10-15 per litre.”
Last month the gold price also surged by ₹1,400, hitting the peak of ₹51,750 per 10 gms.
Kshitij Purohit, Lead of Commodities and Currencies CapitalVia Global Research, said: “Brent Oil has challenged the $120 mark, but we are ready for a retracement at this moment.
“For the following week, it could trade in the $117 to $106 range.”
In addition, IIFL Securities VP, Research, Anuj Gupta said: “We expect the crude oil prices to range from $108 to $116 per barrel. Some price correction may take place on the back of positive outcome on the Iran nuclear deal.
“However, any escalations in tensions will push crude prices higher.”
However, an excise duty cut may dampen the impact on petrol and diesel prices to an extent, but not entirely.
At present, India imports 85 percent of its crude oil needs.
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