Thursday, October 13

Petrol Price Hike in India – The BuzzFeedNewz Times

Global crude oil prices are increasing and have reached to 75 barrel per dollar on account of many factors such as cut in production of oil; sanctions laid by USA on import of oil from Iran. On Monday, the Brent crude oil reached at $78.09 a barrel while US crude oil was $69.9 per barrel.

The situation in India however seems to be worse where petrol and diesel prices are skyrocketing and have touched there highest level. This dramatic rise has been account of fall in rupee to 71 per dollar which shows a depreciation of Rs 2.5 in a month. This is followed by an  increase in rates of crude oil. The price of petrol have risen to a record high of Rs 79.15 per litre in the nation’s capital while diesel reached to Rs 71.15 per litre. Prices in Delhi are the cheapest as compared to other cities on account of low rate of sales tax or VAT.

Other neighbouring nations of India such as Sri Lanka, China and Pakistan are also bearing the brunt of rise in crude oil.  It has already been threatened by US president Donald Trump that whosoever does business with Iran will be cut off from business relations with US. This especially applies to nations like India who import Iranian oil in huge amounts and they could face a tough challenge in order to meet the petrol and diesel demand within the nation.