The geo-political crisis-led global hike in crude oil prices is expected to push India’s domestic prices of petrol and diesel by Rs 15-22 per litre, say experts. Petrol, diesel prices, which are deregulated and directly linked to international oil prices, not getting revised for a record 124 days in a row now. The status quo coincided with assembly polls in Punjab, Goa, Uttrakhand, Manipur, and Uttar Pradesh. Thus, it is widely expected that the OMCs will revise the current prices on or after March 11, which is the day after state assembly election results.
Analysts opined that crude and election have any impact on oil price, however, Roop Bhootra – CEO, Investment Services, Anand Rathi Shares and Stock Brokers, said: “The crude oil prices hitting new highs in global markets, one could expect some price hikes in domestic markets. However, the government has many options to it and could also cushion the impact by adjusting taxes in order to reign inflationary pressures.”
However, an excise duty cut may dampen the impact on petrol and diesel prices to an extent, but not entirely. At present, India imports 85 per cent of its crude oil needs.
