India's Crude Basket Price On The Rise; No Cut In Fuel Rates Anytime Soon

The already-elevated India's crude oil basket price is rising, with the average cost for June jumping to over $115 per barrel.

The already-elevated India's crude oil basket price is rising, with the average based on daily costs for June jumping to over $115 per barrel, compared to $109.51 in May and $102.97 in April.

The Indian government, on May 21, had reduced excise duty on petrol by Rs 8 per litre and by Rs 6 per litre on diesel in a move to combat rising inflation and avoid the pass-through of higher fuel rates as it would have pressured rising prices even further.

While that cut in prices more or less offset the hike in petrol and diesel costs when state retailers restarted revisions late in March, unless the government decides to lower the burden on the common folk again, fuel rates are not likely to come down anytime soon.

According to the Petroleum Planning and Analysis Cell report on Friday, the price of Indian crude was $115.17 per barrel on June 2, 2022, at an exchange rate of (Rs/$) 77.59, underscoring a high average for June so far and likely to remain that way based on trading patterns in International oil markets.