Petrol-Diesel Price: China squeezed India’s discount! India is not getting more discount as China sucks supply
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Russia invaded Ukraine last year. After this western countries had banned it. After this, India started buying crude oil from Russia at a huge discount. In a Mint report, sources have been quoted as saying that the number of oil buyers from Russia is increasing. Hence the discount is getting reduced for Indian refiners. China is the world’s second largest oil buyer. After the epidemic, it has once again opened its economy and has emerged as the largest buyer of Russian oil.
Russia imported record oil
According to the data of the Chinese government, in January and February, China imported the most oil from Russia. During this, it bought 1.568 crore barrels i.e. 19.4 lakh barrels of crude oil daily from Russia. This is 23.8 percent more than last year. America and Western countries have put a cap of $60 per barrel on Russian oil. OPEC countries have announced cuts in oil production from next month. On Friday, crude oil was trading at $78.88 per barrel, up 0.65 per cent. Crude price in Indian basket in April is $84.3 per barrel.
An official of a state-run refinery company said the discount has come down to less than $10 a barrel. Right now we are getting a discount of eight dollars per barrel. Last year, India bought crude oil worth $27 billion from Russia. Cheap oil from Russia helped India meet its demand. Last year, the consumption of petroleum products in the country was 222.3 million tonnes, which is 10.2 percent more than in 2022. This discount also gave an opportunity to state-run refining companies to improve their gross refining margins.
Increasing proximity to Russia, India getting double benefit, Iraq reduced oil prices
When will the price of petrol and diesel decrease
But there is no possibility of reduction in the price of petrol and diesel in the country due to the reduction in the discount on the crude oil being received from Russia. Oil marketing companies are currently engaged in making up for their past losses. Experts say that they are getting a substantial profit on petrol while the profit on diesel is less than Re 1. Assembly elections are to be held in many states in the country this year and then general elections are to be held next year. It is expected that there may be some reduction in the price of petrol and diesel in the second half of the year.
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