New Delhi / Ludhiana: Global energy markets are on edge as international crude oil prices witnessed a sharp spike today. Brent Crude oil surged to $98.21 per barrel, marking a significant increase driven by escalating geopolitical tensions in the Middle East and supply disruptions through the Strait of Hormuz.
Key Market Highlights:
- Current Price: Brent Crude reached $98.21 per barrel (up by over $6.00 in a single day).
- Supply Crisis: Major producers like Iraq have reported terminal shutdowns, and shipping routes remain under threat, tightening global availability.
- Indian Context: India, which imports nearly 85% of its oil, is highly vulnerable to these price fluctuations.
Impact on Petrol & Diesel Prices:
While domestic fuel prices in cities like Delhi (₹94.77) and Mumbai (₹103.44) have remained steady for the last 24 hours, experts warn that a hike is imminent if the rally continues.
- Possible Hike: Analysts suggest that if crude stays above $95, Oil Marketing Companies (OMCs) may have to pass on a cost increase of ₹2 to ₹5 per litre to consumers.
- Government Stance: Official sources indicate that while there is “enough cushion” for now, a sustained breach of the $100 mark will make a retail price revision unavoidable.
The Ripple Effect:
Beyond the petrol pump, the surge in oil prices is expected to increase transportation costs. This could lead to a rise in the prices of essential commodities, vegetables, and FMCG goods, adding pressure to household budgets across India.