Officials from the petroleum ministry have said that the government will ask ONGC to sell it’s fuel to refiners and distributors at around $70 a barrel.
The recent rally in international crude oil prices has inflated India’s crude oil import bill by 23 per cent to $8.2 billion in the month of April despite the quantity of imports in the month falling by 5 per cent, fresh data published by Petroleum Planning and Analysis Cell (PPAC) showed.
Crude oil was trading at $ 112 when petrol prices touched an all-time high of Rs 76.06 in September 2013.
For diesel and petrol, it’s a record a day every day now. On Saturday, petrol touched the all-time high price since 2013. On Sunday, it beat its previous day’s record. On Monday, it created a new all time high record in Delhi and Mumbai by touching Rs 76.57 and Rs 84.40, respectively.
Soon after global crude oil prices hit $80 a barrel, the government said it expected an increase of $25-50 billion in the import bill for 2018-19. That could lead to an oil import bill of $130-155 billion. India’s crude oil import bill for 2018-19 was estimated at $105 billion, according to the petroleum ministry’s Petroleum Planning and Analysis Cell (PPAC).
Over the last few months, crude oil prices have witnessed an unprecedented increase, touching a 4-year high of around $80 a barrel and proving wrong numerous experts, who until recently believed that it wasn’t possible for them to touch these levels in the near term.
India is looking at ways to keep rising fuel prices in check, its oil minister said on Monday, with retail rates for diesel and petrol touching record highs in capital city New Delhi and financial hub Mumbai.
The average price of regular-grade gasoline in the U.S. jumped 10 cents a gallon over the past two weeks to $3.00. Industry analyst Trilby Lundberg of the Lundberg Survey said Sunday that the price has spiked 41 cents over the past three months.
Rising global oil prices may push up India’s import bill by up to USD 50 billion, impacting current account deficit, but would have little effect on growth, Economic Affairs Secretary Subhash Chandra Garg said today even as he remained non-committal on cutting excise duty to ease the burden on consumers.
BP Chief Executive Bob Dudley expects a flood of U.S. shale and the reopening of OPEC taps to cool the oil market after crude rose above $80 a barrel this week.