Canada and Russia have stopped importing oil. Canada bought more than 17,000 barrels of oil a year from Russia. The assessment is that things will drop if other countries follow Canada’s action. Russia has a major role to play in meeting Europe’s oil demand. If these countries decide to leave Russia, other sources will have to be found. OPEC countries that are unwilling to increase oil production after Kovid need to know how far they can meet the needs of the region.
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Things point to the fact that volatility in the oil market will continue even after the war. The barrel had touched a low of 98 against the dollar in the previous session. Russia’s nuclear declarations are complicating matters. With Ukraine making it clear that the US and NATO would not provide military services, the world was of the view that the war would not have further repercussions on international economies. In the current situation, things are unpredictable. The Center had convened a meeting to discuss tax cuts in the wake of rising oil prices.
The pockets of the common man are guaranteed to be emptied after the election heat in the country. It is estimated that petrol will increase by at least Rs 10 per liter. Ordinary people cannot afford the increase in fuel prices with the rising inflation. Global oil prices have moved to a recent record high. This is the first time since September 2014 that global oil prices have risen this much. Rupee loses ground against dollar in early trade This is nominal when considering the rise in oil prices. Last week, global oil prices crossed $ 96, but then fell.
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The Russia-Ukraine war has shaken up the stock market. In the past, when fuel prices plummeted, companies remained silent in order to raise revenue. The government also remained silent on taxes. During Kovid, the OPEC countries reduced oil production. But companies are not ready to increase production despite rising demand after Kovid restrictions. This also led to a rise in prices. Oil prices are at record highs in the near future. Keeping the price above $ 90 is not comforting.
U.S. The sharp rise in inflation has put oil, gold and stock markets in a precarious position. Movements in international markets are increasing local pressure. The election heat in the country is the only thing that keeps the oil companies away from price hikes. In the past too, companies have remained price-free during elections. With the election looming, indications are mounting that local fuel prices will soar.
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Last November, the central government reduced the fuel duty. After this, the oil companies went into silence. It is up to the companies to maintain this silence despite the continuous decline in fuel prices. The government also tacitly agreed to this. But now things are in favor of companies. International oil prices have risen by about 20 per cent since November. If local fuel prices rise, inflation is sure to rise.
The country has a system of changing local fuel prices in line with international oil prices. But it has been four months since companies, the government and the public forgot about it. Oil companies have not been shaken by falling fuel prices for more than two consecutive months. Oil prices have plummeted following the second wave of the Covid. Oil has benefited from reports that the third wave may not be as deadly as the second wave, and that hospitalization is declining. Despite the increase in the number of cases, the fact that countries have not tightened controls makes oil strong.
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Rumors are rife that oil companies, which have fallen asleep as international oil prices plummet, may immediately raise fuel prices. Just before the budget, oil companies cut the price of commercial cylinders yesterday. At the same time, aviation fuel prices were at record highs. The fact that the country is once again in the heat of elections is also a relief to local markets. In the past, oil companies have kept fuel prices stagnant during elections. Omikron, Inflation, U.S. The Fed … nothing optimistic about the average person.
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Fuel prices in major cities
In New Delhi, a liter of petrol costs Rs 95.41. 86.67 per liter of diesel. In Mumbai, a liter of petrol costs Rs 104.46 and a liter of diesel Rs 91.40. In Thiruvananthapuram, a liter of petrol costs Rs 106.36 and a liter of diesel Rs 93.47. Petrol price has crossed Rs 100 here since June 26. In Kochi, petrol is priced at Rs 104.06 per liter. Diesel is priced at Rs 91.40 per liter. Kozhikode: Petrol price reached Rs 100 on August 5. Today, a liter of petrol costs Rs 104.49 and diesel Rs 91.83.
| City | Petrol (Rs.) | Diesel (Rs.) |
| Thiruvananthapuram | 106.36 | 93.47 |
| Cochin | 104.06 | 91.40 |
| Kozhikode | 104.49 | 91.83 |
| New Delhi | 95.41 | 86.67 |
| Mumbai | 109.98 | 94.14 |
Crude oil prices
Internationally, crude oil is trading at $ 117.05 a barrel. Yesterday it was $ 110.53. Following Kovid, OPEC countries imposed production restrictions to raise oil prices. These restrictions are still in place. Indications are that the OPEC countries will not increase production immediately. At the same time, the rupee remained above 75 against the dollar. In the current context, volatility in currencies is likely to continue. At present, the rupee is trading at 75.67 against the dollar. Yesterday it was 75.80. The Russian currency, the ruble, has depreciated by more than 40 percent in the wake of the sanctions.
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