Indore (Madhya Pradesh): The ever-increasing rise in the price of petrol has been arrested for the last six months ending the uncertainty vehicle owners faced over the price of petrol every time they went to a fuel pump to fill petrol in their vehicle.
The price has remained steady at around Rs 108 per litre since May 22 all thanks to the adequate supply of crude oil from Russia, especially after the Russia-Ukraine war.
From March 21, 2022, the petrol price in Indore started rising. On March 21, it was Rs 107.26 per litre which went up continuously for 18 days and reached Rs 118.61 on April 6, 2022. The price of petrol remained the same till May 20, 2022 and on May 22, 2022, it fell to Rs 108.72 and since then it has remained around Rs 108.
Last year in the same period of May to November, the price of petrol rose from Rs 100.31 on May 11, 2021 to Rs 118.84 on November 3, 2021. However, on November 11, 2021 the price came down to Rs 107.26 which is Rs 1.42 less than the price of petrol on November 12, 2022, which is Rs 108.68.
Similarly, the rate of diesel is also in a straight line and since May 22, 2022 the rate has remained between Rs 93.56 to Rs 94.34. However, in last November, the rate of diesel was around Rs 90 which has increased by Rs 3 to Rs 4 this year.
The Ukraine conflict and the consequent economic sanctions on Russia by the West have improved trade between India and Russia. Import of coal and coke, and fertilisers has increased.
While India’s imports from Russia in April-September period surged 410 per cent to $21.34 billion, its exports declined 18.8 per cent to $1.3 billion, leaving a trade gap of $20 billion, per government figures.
Following the economic sanctions imposed on it, Russian discounts on oil during April-June went up to $35 per barrel, with India getting oil at about $75/barrel. Consequently, in the first six months of 2022-23, India sourced crude worth $14 billion from Russia accounting for 15.62 per cent of its total oil imports up from less than 2 per cent last fiscal.
Indian refiners bought about 25 million barrels of Russian oil in May. Russian-origin crude accounted for 10 per cent of India's total seaborne imports in April, rising from 0.2 per cent throughout 2021 and Q1 2022. Russia jumped to the position of No 3 crude supplier to India (after Iraq and Saudi Arabia) in April-September, per Commerce Ministry data. While data energy intelligence firm Vortexa marks Russia as India’s top oil supplier in October.
According to the experts’ analysis, this scenario will play out again. With crude projected at $98-103 a barrel in H1 2023, India might be able to secure supplies for $68-75, depending on how the Russian situation pans out.
“It is good that the rates have not fluctuated. Neither we are at a loss nor are we earning too much profit. The consistency in the petrol rate would remain the same till Russia continues to supply fuel to India in the required quantity.”
- Rajendra Singh Vasu, president, Indore Petroleum Dealers Association
