India's crude basket has surged passed the $114 mark, making it difficult for the government to hold back on a fuel price increase.
The international crude oil price for Indian Basket as computed by the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas has increased to US$ 114.42 on September 12, 2012.
The price was higher than US$ 112.39 /bbl, which was witnessed in the last fortnight of August 2012. In rupee terms India's crude oil price has risen to Rs 6322 per bbl on September 12, 2012.
The rise in the Indian basket for crude is largely in line with the rise in crude prices internationally, fuelled largely by developments around the globe. Hopes of a quantitative easing programme from the Federal Reserve, has all along ensured a smart rally in commodities, including crude.