Crude shock: Rise in oil prices may deepen India's auto crisis, say experts

Spike in oil prices will translate into a matching or higher increase in fuel prices in domestic market

Spike in international crude oil prices, following a drone attack in Saudi Arabia’s largest oil production facility, has come as another blow to India’s beleaguered automotive sector. 

The attack and the resulting cut in Saudi crude oil production led to a 20 per cent spike in Brent crude oil — the benchmark used to price Indian’s oil imports.  Brent is currently trading with gains of 10.7 per cent.

This will translate into a matching or even higher increase in petrol and diesel prices in the domestic market based on the relative movement in the rupee exchange rate against the US