Why fuel prices are rising in India?
Why has Brent crude oil price surged above $70 a barrel and how it will impact fuel prices in India?
Conflict in Saudi Arabia
The assault was claimed by Yemen's Houthi rebels, as a retaliation to Saudi-led military coalition bombing Yemen's Houthi-controlled capital Sanaa after intercepting a separate flurry of cross-border Houthi drones and missiles.
Drone Attack on Oil Terminal
The world's largest oil terminal, Ras Tanura was attacked by a drone (which was intercepted) and a ballistic missile aimed at Aramco facilities in Dhahran city in eastern Saudi Arabia.
Spike in Crude Oil Prices
Following the attack on the oil facility, the oil companies announced an increase in the crude oil prices. Prices jumped 2.11 percent to $70.82 a barrel, the highest since May 2019.
Impact on India
India could face another price hike after the hike of Brent crude prices as the retail selling price of petrol and diesel in India is determined based on the international prices of the products as well as state and central taxes.
Fuel Price Hike
India saw a fuel price hike 26 times in about the last 3 months. Currently petrol prices have already crossed the 100-rupee mark in some parts of the country.