Motorists brace for fuel price increase as Brent rallies upward of $130

There has been no price change in retail fuel prices for the last 100 days.

By Shahkar Abidi calendar 09 Mar 2022 Views icon3294 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

It is only a matter of time before motorists in India will have to pay more for fuel as Brent crude prices have moved upwards of  $130 per barrel as the US and UK ban imports of Russian oil and gas  in response to its invasion in Ukraine. 

While the quantum of the increase would need to be in the region of Rs 20, the government will attempt to cushion the blow and let the oil marketing companies (OMC) absorb the rest. It is, therefore, not quite a win-win situation for both. For OMCs, it simply means further pressure on their margins. Higher prices will only add to inflationary pressures and this will hit the common man who is already reeling from price hikes and job losses.

There has been no price change in retail fuel prices for the last 100 days. The results of the state elections will become known tomorrow, and a price announcement can be expected.

Russia, the world’s largest producer of crude at 10 million barrels per day exports nearly 4.7 mmbpd crude to various countries including India. OPEC+, which is a group of crude  producing countries  currently though has a spare capacity of 5.0mmbpd.

Also read: Electric to gain momentum as auto fuels get dearer

Lucas TVS ties up with ARENQ for speedy delivery of e-motors and controllers across India

auther Autocar Pro News Desk calendar30 Jan 2023

Strategic association aims to boost Lucas TVS’s EV motor and controller distribution while equipping ARENQ with EV maint...

Omega Seiki to invest Rs 800 crore in EV powertrain and battery plants

auther Autocar Pro News Desk calendar29 Jan 2023

EV manufacturer to set up greenfield plants for EV components in Haryana and Maharashtra; will produce e-powertrains fro...

Orbitsys Tech’s CRM solutions optimise dealer management for smaller OEMs in India

auther Autocar Pro News Desk calendar29 Jan 2023

Gurgaon-based dealer-networking solutions provider is enabling new OEMs to expand swiftly by using its cost-efficient, f...