Inflationary concerns amid rising oil prices
What has also contributed to the recent jump in prices is the slow progress in diplomatic talks over the lifting of US sanctions on Iran. A delayed deal between Iran, the US and other powers over the Islamic Republic’s nuclear programme means a lo...
By ET Bureau | Updated:
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New Delhi: Oil prices topped $76 a barrel on Thursday, mounting inflationary worries for India where auto fuel prices are already at record-high levels for months.
Crude oil prices are climbing as fuel demand makes a strong comeback with the reopening of economies and supplies stay restricted. Members of OPEC+, a grouping of 23 oil-producing countries led by Saudi Arabia and Russia, are meeting later this week to review the market situation and will be under pressure to further ease production cuts.
India last week demanded OPEC ease supply restrictions to rein in rising prices and help sustain an economic recovery that’s still fragile.
What has also contributed to the recent jump in prices is the slow progress in diplomatic talks over the lifting of US sanctions on Iran. A delayed deal between Iran, the US and other powers over the Islamic Republic’s nuclear programme means a longer absence of Iranian oil from the international market.
High oil prices have already translated into record-high fuel prices in India. Since the beginning of June last year, petrol and diesel prices have risen by Rs 27 and Rs 20 per litre, respectively. Fuel prices are also high due to steep taxes and expanding marketing margins of state oil companies. Increased fuel prices are already showing up in consumer inflation.
Crude oil prices are climbing as fuel demand makes a strong comeback with the reopening of economies and supplies stay restricted. Members of OPEC+, a grouping of 23 oil-producing countries led by Saudi Arabia and Russia, are meeting later this week to review the market situation and will be under pressure to further ease production cuts.
India last week demanded OPEC ease supply restrictions to rein in rising prices and help sustain an economic recovery that’s still fragile.
What has also contributed to the recent jump in prices is the slow progress in diplomatic talks over the lifting of US sanctions on Iran. A delayed deal between Iran, the US and other powers over the Islamic Republic’s nuclear programme means a longer absence of Iranian oil from the international market.
High oil prices have already translated into record-high fuel prices in India. Since the beginning of June last year, petrol and diesel prices have risen by Rs 27 and Rs 20 per litre, respectively. Fuel prices are also high due to steep taxes and expanding marketing margins of state oil companies. Increased fuel prices are already showing up in consumer inflation.
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