New Delhi, Dt
With international crude prices soaring to સપાટી 121.3 a barrel, oil marketing companies have no choice but to raise petrol and diesel prices, so the government’s advantage of lowering excise duty in the next two to three months is likely to be washed away. About 5% of India’s crude oil requirements are met by imported crude oil, so it has to bear the brunt of the price hike in the international market. At present, petrol in different cities of India costs Rs. 6 and Rs. Per liter of diesel. It is being sold at around Rs. Petrol price has gone up by Rs. It is likely to reach above 100. Diesel prices are also Rs. It is expected to reach close to 100. With the rise in petrol and diesel prices, the government’s excise revenue on them has come down. India’s budget for the year 205-2 has been prepared with the calculation that the international market price of KD will be around ૭૫ 5 to તેથી 70, so the budget calculations are also likely to go awry. At present, the price of KD is 20 to 5 per cent higher than the estimate of KD in the international market. Therefore, the major cost of foreign exchange is likely to be borne by the import of KDN. At present, crude oil imports are estimated at Rs. Foreign exchange is used for Rs 2.5 lakh to Rs 2.5 lakh crore. As a result, the gap between imports and exports is likely to be much longer. It is also likely to have a big impact on the forex reserves. As the forex reserves plummeted in 181, India was forced to send its gold abroad to sell. The government has long lifted the price of petrol and diesel. The Government of India has adopted a policy of adjusting its prices according to market conditions. But the Government of India has increased the excise duty by Rs. Oil companies had stopped raising petrol and diesel prices from April 4, 2008 after the reduction of Rs. He avoided raising prices despite rising international prices. Oil marketing companies currently charge Rs. 12 to 21 losses are coming. Indian Oil, Bharat Petroleum and Hindustan Petroleum, the state-owned companies in India’s petroleum sector, have been conducting six-month supply deals with their international suppliers since January 2008. Will deal to supply again with new prices after June 303. There are indications that Russia may not be able to supply India with additional supplies to its international buyers. According to Goldman Sachs, an international market analyst, the price of crude in the international market is expected to hover around ૪ 150 per barrel in the July-September quarter. In April, India received an average supply of KD at ૨ 106.5. If the average price of KD supply till June 10 is deducted, then India has got KD supply at an average price of Rs 114.5 per barrel. Brent KD’s July futures price is currently trading at ૨૨ 12.5 a barrel in the international market. It is also forecast to have an average price of 150 per barrel in the international market between October and December 203. In this context, India has no choice but to increase petrol and diesel prices. Government of India’s oil marketing companies cannot afford to incur further losses in the current circumstances. Rising petrol-diesel prices will push up inflation in India. Inflation will also go up. At a time when the Reserve Bank of India and the Government of India are constantly struggling to control inflation, which has reached 7.5 per cent, rising KD prices are likely to disrupt their calculations and plans.
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