The Indian crude oil basket has touched $106.60, the highest in the current financial year, in tune with the global surge in prices. India relies on imports to meet over 80 per cent of its crude oil requirements. The Indian crude basket represents a mix of Oman, Dubai and Brent crude.
Oman crude oil futures on Thursday rose to a 30- month high on concerns that some production in Libya may be halted. Libya accounts for a little over 2 per cent of crude oil globally. Futures in Oman, for delivery in April, gained $5.65 to $114 per barrel on the Dubai Mercantile Exchange. Brent crude also touched well over $119 per barrel. “A fuel price rise seems inevitable. The government has to decide on the timing, possibly after Budget Session of Parliament,” said an oil company official.
The Indian crude basket averaged around $99.85 per barrel in February so far, a rise of over 6 per cent, compared with January’s average of $93.87. The current quarter average, at $96.43, rose 13 per cent, from $85.06 in the previous quarter. The current year’s average price stands at $82.07 per barrel, up over 17 per cent from last financial year’s average of $69.76.
The underrecovery on diesel today stands at Rs 10.74 per litre. OMCs lose Rs 20.56 per litre on kerosene sales and Rs 356 for every 14.2-kg LPG cylinder. Though petrol prices have been decontrolled with effect from June 26, 2010, the companies incur a loss of over Rs 2.50 per litre, as they have not been able to pass on the entire price hike. Any loss on petrol will not be compensated. For the current financial year, the gross underrecovery of OMCs is estimated at Rs 75,000 crore.
