Russia declare war on Ukraine: Will petrol, diesel prices go up in India?

The changes in petrol and diesel rates in the country are directly influenced by the price of crude oil in the international market.

International oil prices surged, with Brent crude futures breaching $100 a barrel for the first time since 2014 on Thursday as Russia attacked Ukraine, leading to concerns that a war in Europe could disrupt global energy supplies. Russia is a major oil producer and if there is a supply disruption following sanctions, crude prices may witness further spike. And, that is not good news for import-dependent India.

Brent crude hit a high of $102.48 a barrel, the highest since September 2014, and was at $102.06 a barrel, up $5.22, or 5.4 per cent, Reuters reported.

US West Texas Intermediate (WTI) crude futures jumped $4.85, or 5.3 per cent, to $96.95 a barrel, after rising to as much as $97.40, the highest since August 2014.

India is the world's third-largest importer of oil, and high global prices percolate through the economy and hurt consumers, while also widening the country's current account deficit, according to a Reuters report.

India's dependence on oil imports stood at 197 metric tons (MT) in 2021, down from 220 MT in 2018.

The dependence on oil imports was 84.4 per cent in 2021, 85 per cent in 2020, 83.8 per cent in 2019, 82.9 per cent in 2018, and 81.7 per cent in 2017.

In India, the government does not regulate petrol and diesel prices. Oil marketing companies in the country revise the fuel prices.