This is why crude at $140 is whipsawing Indian markets and currency

Updated : Mar 07, 2022 11:07
|
EJ Biz Desk

Crude prices are surging to 14 year highs and your petrol, diesel bill is also seen escalating well past the previous record high. Here are the reasons why Putin is now India's biggest problem at the petrol pump and at the Finance Ministry. 

Also read & watchRupee at record low! RBI lends a helping hand, reportedly sells dollars 

  • India is the world’s third-biggest oil user
  • India imports over 80% of it's crude demand 
  • India paid $82.4 billion for the crude oil it imported in the nine months through December 2021
  • Crude bill for India set to top $100 billion this year 
  • This is a 109% jump over last year's same period though amount imported only went up by 9%
  • Annual oil demand seen at an all-time high - 214.5 million tons 
  • Every $1 rise in crude oil prices increases India’s import bill by about $1.5 billion 
  • The average price is about $79 per barrel this fiscal year as against $45 in 2020-21 and $60.5 in 2019-20
  • Double whammy of a stronger dollar playing out
  • For every rupee value decrease vs dollar increases spending by up to Rs 2,700 cr
Ukraine-Russia WarDiesel price hikeCRUDE OILPetrol and diesel

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