PTI, New Delhi :
Petrol and diesel prices rose for the fourth straight day on Sunday as global oil prices jumped after the US killed a top Iranian general, fanning fresh fears of conflict in the crude-rich Middle East.
Retail pump price of petrol was hiked by 9 paise per litre and that of diesel by 11 paise, according to a price notification of state-owned fuel retailers.
Petrol in Delhi now costs Rs 75.54 per litre – the highest in more than a year, while a litre of diesel comes for Rs 68.51.
While global stock markets were mixed following the US killing of Qasem Soleimani, oil prices jumped more than 3 per cent on Friday. Oil markets will reopen on Monday after the weekend break.
The killing of Soleimani represents “a significant spike in geopolitical risks and could lead to a direct confrontation between the US and Iran,” Oxford Economics said in a commentary. India is 84 per cent dependant on imports to meet its oil needs and any spike in global prices has a direct bearing on its economy. Not just imports but even domestic crude oil – which forms the raw material for making petrol, diesel and other petroleum products – is priced according to international benchmarks.
Middle East accounts for more than two-thirds of the country’s oil imports, with Iraq and Saudi Arabia being the top suppliers.
Even though the import basket has been sought to be diversified with oil being contracted from nations such as the US, pricing in all the regions is governed by international benchmarks and rates went up everywhere following Friday’s strikes.
Officials said there is no immediate threat of any supply disruption to India and the only impact would be felt in prices.
Petrol and diesel prices rose for the fourth straight day on Sunday as global oil prices jumped after the US killed a top Iranian general, fanning fresh fears of conflict in the crude-rich Middle East.
Retail pump price of petrol was hiked by 9 paise per litre and that of diesel by 11 paise, according to a price notification of state-owned fuel retailers.
Petrol in Delhi now costs Rs 75.54 per litre – the highest in more than a year, while a litre of diesel comes for Rs 68.51.
While global stock markets were mixed following the US killing of Qasem Soleimani, oil prices jumped more than 3 per cent on Friday. Oil markets will reopen on Monday after the weekend break.
The killing of Soleimani represents “a significant spike in geopolitical risks and could lead to a direct confrontation between the US and Iran,” Oxford Economics said in a commentary. India is 84 per cent dependant on imports to meet its oil needs and any spike in global prices has a direct bearing on its economy. Not just imports but even domestic crude oil – which forms the raw material for making petrol, diesel and other petroleum products – is priced according to international benchmarks.
Middle East accounts for more than two-thirds of the country’s oil imports, with Iraq and Saudi Arabia being the top suppliers.
Even though the import basket has been sought to be diversified with oil being contracted from nations such as the US, pricing in all the regions is governed by international benchmarks and rates went up everywhere following Friday’s strikes.
Officials said there is no immediate threat of any supply disruption to India and the only impact would be felt in prices.
