KSRTC in the state Indications are that the performance of large consumers such as will be disrupted by the current price hike. With the increase of Rs 27 per liter, KSRTC will have to find an additional Rs 26-28 crore per month. The essence is that the bus charge will jump immediately. Oil companies have been pushing for higher prices for diesel for large consumers amid falling international oil prices. Many see this as a prelude to rising retail fuel prices.
As global oil prices began to fall, no one expected a major impact on fuel prices. It is estimated that a one-time increase of Rs 27 per liter of diesel will increase the price of essential commodities. Russia has offered India cheaper oil as Western nations tighten sanctions on Russia. That too on the indication that a transaction in rupees is possible. Oil is stagnant in Russia as European countries boycott Russian oil. The strong indication that India may accept Russia’s offer has also contributed to the fall in global prices.
Russia met more than 40 percent of European oil demand. But India, which relies on oil imports for 80 per cent of its demand, buys only 2-3 per cent of its oil from Russia. It is clear that India may accept Russia’s offer of oil at a lower price, and there are indications that those who supplied oil to India have been forced to cut prices. The price of oil reflected the progress of peace talks during the war and the fact that the OPEC Plus countries had made it clear that they would increase production. Prices may fall further in the coming days.
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At the same time, retail fuel prices in the local market have remained unchanged since the election. This is a matter of comfort for the users. Despite reports that local fuel prices will rise following the election, oil companies have decided to consult with the government on the sharp rise in prices. This is the reason why the price hike is prolonged. In the event of a fall in international oil prices, repercussions can be expected on local fuel prices as well. With the barrel price close to 100, there is no possibility of a sharp rise in prices.
When the concessions ended in November, international oil prices were at $ 80-82 per liter and $ 130 per liter. The oil companies remained silent as local elections were important to the government. With rising inflation in the country, every increase in fuel prices will make matters worse. It is in this context that the companies decided to consult the government on the price hike. But the companies were angry that the decision was being delayed by the government. Meanwhile, the new announcement.
Oil volatility in global markets has begun to affect the economies of nations. Most countries are under the threat of inflation following Kovid. Inflation in the US is at a 40-year high. Oil prices are currently at a 13-year high. The beginning of the current crisis is the tightening of sanctions on Russia by world powers. Russia tightens sanctions on oil
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At the same time, it is reassuring that OPEC Plus countries have made it clear that they can increase production. This is the first time since Kovid that OPEC has taken a positive stance on international markets. OPEC’s decision comes amid rising oil demand as European countries and the United States cut off Russian imports. Countries were attracted by the assessment that even if production increased, prices would not fall sharply in the current situation. U.S. There are indications that pressure from countries including India has also led to the decision. Russia supplies more than 40 percent of European oil demand.
Last November, the central government reduced the fuel duty. After this, the local oil companies went silent. It is up to the companies to maintain this silence despite the continuous decline in fuel prices. The government also tacitly agreed to this. But now things are in favor of companies. International oil prices have risen by regarding 30 per cent since November. If local fuel prices rise, inflation is sure to rise.
Fuel prices in major cities
In New Delhi, a liter of petrol costs Rs 95.41. 86.67 per liter of diesel. In Mumbai, a liter of petrol costs Rs 104.46 and a liter of diesel Rs 91.40. In Thiruvananthapuram, a liter of petrol costs Rs 106.36 and a liter of diesel Rs 93.47. Petrol price has crossed Rs 100 here since June 26. In Kochi, petrol is priced at Rs 104.06 per liter. Diesel is priced at Rs 91.40 per liter. Kozhikode: Petrol price reached Rs 100 on August 5. Today, a liter of petrol costs Rs 104.49 and diesel Rs 91.83.
| City | Petrol (Rs.) | Diesel (Rs.) |
| Thiruvananthapuram | 106.36 | 93.47 |
| Cochin | 104.06 | 91.40 |
| Kozhikode | 104.49 | 91.83 |
| New Delhi | 95.41 | 86.67 |
| Mumbai | 109.98 | 94.14 |
Crude oil prices
Internationally, crude oil is trading at $ 107.93 a barrel. Barrel prices are rising once more as OPEC countries make it clear that they will increase production immediately. At the same time, the rupee is showing some optimism once morest the dollar. It is a relief that following a long time, the value fell below 76. The rupee is currently trading at 75.95 once morest the dollar. The Russian currency, the ruble, has depreciated by more than 50 percent in the wake of the sanctions.
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