Oil prices, which were as low as $43 a barrel in 2015, are now above 80$ with traders across the country fearing that the rates might leap above $100 a barrel in a matter of few months. This came after sanctions were imposed by the US on Iran, who is the third largest supplier of Indian oil and potential volatility between the US and Saudi Arabia over the killing of journalist Jamal Khashoggi. All these factors are set to play havoc on the oil market and will result in a steep drop in the value of the rupee.
Analyst across the country are warning of the difficult times ahead. CEOs and experts from the oil and gas sector, from both India and abroad, met prime minister Narendra Modi on Monday. During the interaction, experts appreciated the steps taken by the government, for ease of doing business, and specifically in the energy sector in India. Prime Minister Narendra Modi highlighted the significant position of India in the oil market across the world and also emphasized that India’s economy is producer driver and both the quality and prices are dependent on the oil-producing countries.
He urged for a partnership between the producer and consumer in the oil market which according to him will stabilize the global economy. He also appealed to the oil-producing countries to channel their investible surplus to pursue commercial exploitation in the oil sector in the developing countries and sought the role of private participation in the distribution of the gas sector.
Petrol and diesel prices surged up again on Tuesday. At Rs. 80.04, the diesel price stood the highest in Chennai. It has so observed an upward surge in Mumbai and Delhi. In the national capital, the fuel stands at Rs. 75.69 per liter, after a hike of 0.23.