Hyderabad: The ongoing conflict in the Red Sea has the potential to impact gold and petrol rates in Hyderabad and other cities in India as Brent crude oil has already reached USD 83.92 per barrel today.
Although the government has not hinted at any rise in petrol or diesel rates so far, India will be affected by the surge in crude oil in the international market, given its position as the third-largest importer of oil.
Freight costs pose threat
As India heavily depends on Russian supplies through the Red Sea, the ongoing conflict may lead to a rise in freight costs.
While the Houthis are not targeting Russian ships and cargoes, there is a possibility of rerouting supplies around the southern tip of Africa instead of the shortest route through the Suez Canal and the Red Sea.
However, the chances of a rise in petrol and diesel rates in Hyderabad and other cities in India until the completion of general elections are unlikely.
Gold rates may jump in Hyderabad, other cities
Gold rates may jump in India due to the ongoing conflict in the Red Sea. The potential rise in yellow metal rates is attributed to the direct relation between yellow metal rates and crude oil prices.
Current gold rates in Hyderabad and other cities have surged by over 0.6 percent in the past 10 days. At present, the rates of 10 grams of 24-carat and 22-carat gold are Rs 57800 and Rs 63050 respectively.
It remains to be seen how the ongoing conflict in the Red Sea will impact gold and petrol rates in Hyderabad and other cities.