Indian Crude Oil Basket Prices On The Rise Again; Up Over 8% Last Week

The Indian crude oil basket price is rising again, tracking the run-up in global oil markets on supply concerns as the Russia-Ukraine war intensifies.

According to the Petroleum Planning and Analysis Cell report, the Indian crude oil basket price rose to $106.03 per barrel on April 15, 2022, at an exchange rate of Rs 76.22 per dollar.

The price of the Indian basket crude was $97.82 per barrel on April 11, 2022, at an exchange rate of (Rs/$) 75.96, indicating over $8, or 8.39 per cent jump since then.

While the latest price is below the March average of $112.87, it has risen well past the $103.02 per barrel on April 1.

That surge in prices, coupled with the 26 paise weakening in the rupee against the dollar between April 11 and April 15, suggests an upward pressure likely on domestic fuel rates.

Retail fuel prices have remained unchanged for the 12th consecutive day as on Monday, but if the rising trend in global crude and the Indian oil basket price continues, retailers would be forced to hike pump prices.

Reports last week showed that petroleum Minister, Hardeep Singh Puri, had urged states to cut VAT on petrol and diesel for giving relief to consumers.

Indian crude oil basket prices averaged $84.67 per barrel in January and $94.07 in February. The average cost in April last year of about $63 per dollar was significantly lower compared to the latest data.

Petroleum Ministry sources had told NDTV on April 6 that "Indian crude oil prices still remain high." 

"The price of crude oil in the international market remains high, with the Indian crude oil basket still hovering around $104 per barrel today," Petroleum Ministry Sources had told when asked about the softening trend back then. 

"It used to be around $70 to $80 per barrel some months ago," the sources had added.