Jain noted that geopolitics and traditional summer demand have been driving up prices.
Rising global crude oil prices are a cause of concern and anxiety for India, said oil secretary Pankaj Jain on Wednesday.
“Whenever prices go up, it does cause anxiety, cause concern. Does it stop at $90 per barrel? That’s the matter of anxiety,” Jain said.
The secretary’s comments come on the backdrop of oil prices having risen to $89 per barrel on Wednesday due to rising geopolitical tensions in the Middle East and between Russia and Ukraine.
When asked whether retail fuel prices can see an uptick considering the rising oil prices, Jain said that the country’s oil marketing companies will take an appropriate decision if crude prices continue to stay higher for a month longer.
Jain noted that geopolitics and traditional summer demand have been driving up prices. On Wednesday, Ukraine attacked Russia’s largest oil refineries. Iran also said that it will retaliate against Israel’s attack on its embassy that killed its senior military officers.
India imports about 88% of its crude requirements. Refiners are supposed to revise retail fuel prices on a regular basis tracking international prices. However, the practice was suspended after the extreme volatility in global oil markets in 2022.Indian refiners have recently announced a cut in retail fuel prices by Rs 2 per litre after two years. If prices continue to rise, it may impact the marketing margins of OMCs, analysts say.
Source:financialexpress.com