US, Israel Iran war: Crude oil prices reach a three-and-a-half-year high, costlier by abut 48% in just 10 days, wil petrol and diesel prices in India increase?
US, Israel Iran war: Due to the ongoing war between the US, Israel, and Iran in the Middle East, crude oil prices in the international market have reached a three-and-a-half-year high.
On Sunday, the price of Brent crude oil crossed the $100 per barrel mark. Previously, crude oil had crossed $100 in 2022.
As soon as trading began on the Chicago Mercantile Exchange, Brent crude oil jumped 16.5% to $108, after closing at $93 on Friday.
India has sufficient oil
Crude oil has become costlier by approximately 48% in just 10 days during the war. However, the Indian government maintains that we have sufficient oil, so petrol and diesel prices in India will not increase.
The Indian government stated on March 8 that India would not face a shortage of crude oil. India currently has a stockpile of over 250 million barrels (approximately 4,000 crore liters) of crude oil and refined petroleum products.
Country's entire supply chain could function smoothly for 7 to 8 weeks
According to the government report, this backup is sufficient to ensure that even if supplies were to completely stop, the country's entire supply chain could function smoothly for 7 to 8 weeks. This means there is no concern about a shortage of petrol, diesel, and other petroleum products in the coming days. The government clarified on March 7th that it would not increase the prices of petrol and diesel.
40% of India's crude oil comes through Hormuz
Concerns have often been raised about the Strait of Hormuz, one of the world's most sensitive sea routes, but India has changed its strategy. Now, only 40% of India's crude oil comes through this route.
The remaining 60% comes from alternative routes such as Russia, West Africa, the United States, and Central Asia.
India will purchase crude oil from Russia
India will purchase crude oil from Russia. The US Treasury Department has granted a 30-day special license to Indian refineries. This license will be valid until April 3. This means there is no possibility of a crude oil shortage in India.