OMCs May Hike Fuel Rate Soon As Indian Crude Basket To Hit Decadal High

The state run OMCs in the country on the back of the Indian basket of crude hitting a decadal high of $121.8 per barrel on Friday may be propelled to raise fuel rates in the country by a margin.

The Indian basket is representative of a derived basket that comprises of sour grade as well as sweet grade of crude oil processed in Indian refineries. From 2017, India decontrolled petrol and diesel retail prices. Nevertheless its influence can be estimated from the fact that OMCs have not been increasing rates since last increase on April 6. This is even amid huge cost pressures as well as increasing under-recoveries that currently are between Rs. 18-21 per litre.

Petrol in Delhi is currently selling at Rs 96.72 per litre and diesel at Rs 89.62 per litre. The Indian basket which averaged around $102.97 per barrel in Friday rose to $118.34 per barrel as of June 10, 2022.

During the week, Goldman Sachs estimated brent crude to hit $140 per barrel during the next quarter and will continue at $130 per barrel in October-December period.

Earlier in the week, Goldman Sachs predicted Brent crude prices would hit $140/barrel during the July-September period and will remain high at $130 per barrel in the October-December period.