With the ongoing Russia-Ukraine crisis, the price of diesel, petrol and other natural gases could rise by Rs. 15 or Rs. 22 per litre from the coming week in India.
However, it is expected that the OMCs will fix the recent price on or after March 7. Currently, India imports 85 per cent of its natural oil demand.
India has already crossed the target range of the Reserve Bank of India (RBI) in January vis-a-vis natural oils. According to the industry calculations, 10 per cent rise in the natural oil price adds nearly about 10 basis points in CPI inflation.
On Friday, the Brent-indexed crude oil stood at $113.76 per barrel from a 10-year high of $119.84 per barrel a day before. Currently, Russia is the third-largest producer of crude oil in the world.
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 outcomes on the Iran nuclear deal. However, any escalations in tensions will push crude oil prices higher.”
Kshitij Purohit, Lead of Commodities and Currencies CapitalVia Global Research, speaking to Business Standard 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.”
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