Analysis: know why the prices of petrol and diesel are increasing
Friday - August 31, 2018 12:40 pm ,
Category : WTN SPECIAL
Falling rupee is the biggest reason for the hike in petrol-diesel prices
AUG 31 (WTN) - The price of petrol and diesel is increasing every day, due to that your wallet is affecting. But if you are thinking that the prices of petrol and diesel will be reduced soon, then you are thinking wrong. In the coming days, the cost of both of these will increase and you will have to face inflation. Why the prices of petrol and diesel are increasing? Let's tell you in detail.
For your information, let you know that India imports 80% of its crude oil. Since crude oil imported from abroad, so India has to pay for it in the US dollar. Whenever crude oil prices increase or the Indian rupee is weak compared to the dollar, prices of petrol and diesel being increased in the country.
According to the information, crude oil, in the international market, had become costlier for four dollars this week, this impacts and the price of petrol-diesel increased in India. However, the price of crude oil in the global market has stagnated due to the threat of business warfare between the US and China. But experts say that due to the large gap between demand and supply, it is difficult to get cheap petrol-diesel right now.
According to information received from the media, Brent crude can get a boost of up to $ 80 per barrel and up to $ 75 per barrel level in American light crude. Due to this, prices of petrol and diesel may also increase. Petrol-diesel will be more expensive as the rupee is in the weakest position compared to the dollar.
International politics also have a great effect on the prices of oil. For your information, let you know that Saudi Arabia has decided to cut the production of crude oil. Here in the US, the reserve of oil has decreased in the last week, while there are American restrictions on Iran. Due to all these reasons, oil prices have risen in these days, which can continue in the coming days.
According to experts, in the winter season, oil consumption in the United States increases, due to which crude oil prices are expected to increase. If crude oil is more expensive then it is natural that petrol-diesel in India will also be expensive, so the common public will have to suffer.
According to the information, the crude oil reserves in the US dropped 2.6 million barrels to 40.58 million barrels in the week ended August 24. At the same time, the import of oil is becoming costlier due to the historical decline in rupee against the dollar. Due to which the prices of petroleum products in India can remain intensified.
Naturally, if crude oil is expensive, then diesel will be expensive, and if diesel is sold cheaper, then its impact falls on the entire economy. Because, if the diesel becomes expensive, so the transportation cost will be increased, therefore from food items to all goods items to be expensive.
If the rupee continues to decline against the dollar, then it can be said that oil prices will not be reduced even after crude oil imports are accessible. Due to the Turkish crisis, not only the Indian rupee, but the currencies of many Asian countries are being declined against the dollar. It is believed that unless the solution of the Turkish crisis is solved, the rupee will weaken, and you will have to pay the price of expensive petrol-diesel.
AUG 31 (WTN) - The price of petrol and diesel is increasing every day, due to that your wallet is affecting. But if you are thinking that the prices of petrol and diesel will be reduced soon, then you are thinking wrong. In the coming days, the cost of both of these will increase and you will have to face inflation. Why the prices of petrol and diesel are increasing? Let's tell you in detail.
For your information, let you know that India imports 80% of its crude oil. Since crude oil imported from abroad, so India has to pay for it in the US dollar. Whenever crude oil prices increase or the Indian rupee is weak compared to the dollar, prices of petrol and diesel being increased in the country.
According to the information, crude oil, in the international market, had become costlier for four dollars this week, this impacts and the price of petrol-diesel increased in India. However, the price of crude oil in the global market has stagnated due to the threat of business warfare between the US and China. But experts say that due to the large gap between demand and supply, it is difficult to get cheap petrol-diesel right now.
According to information received from the media, Brent crude can get a boost of up to $ 80 per barrel and up to $ 75 per barrel level in American light crude. Due to this, prices of petrol and diesel may also increase. Petrol-diesel will be more expensive as the rupee is in the weakest position compared to the dollar.
International politics also have a great effect on the prices of oil. For your information, let you know that Saudi Arabia has decided to cut the production of crude oil. Here in the US, the reserve of oil has decreased in the last week, while there are American restrictions on Iran. Due to all these reasons, oil prices have risen in these days, which can continue in the coming days.
According to experts, in the winter season, oil consumption in the United States increases, due to which crude oil prices are expected to increase. If crude oil is more expensive then it is natural that petrol-diesel in India will also be expensive, so the common public will have to suffer.
According to the information, the crude oil reserves in the US dropped 2.6 million barrels to 40.58 million barrels in the week ended August 24. At the same time, the import of oil is becoming costlier due to the historical decline in rupee against the dollar. Due to which the prices of petroleum products in India can remain intensified.
Naturally, if crude oil is expensive, then diesel will be expensive, and if diesel is sold cheaper, then its impact falls on the entire economy. Because, if the diesel becomes expensive, so the transportation cost will be increased, therefore from food items to all goods items to be expensive.
If the rupee continues to decline against the dollar, then it can be said that oil prices will not be reduced even after crude oil imports are accessible. Due to the Turkish crisis, not only the Indian rupee, but the currencies of many Asian countries are being declined against the dollar. It is believed that unless the solution of the Turkish crisis is solved, the rupee will weaken, and you will have to pay the price of expensive petrol-diesel.
