Global crude oil prices on Tuesday spiked past $80 (Rs 3,689) a barrel for the first time in 2009. The New York's crude for delivery in November, reached $80.05 a barrel, the highest point since October 14, 2008.
For India, if this price trend persists, it will ultimately impact the major consumer prices of auto and cooking fuels — petrol, diesel, cooking gas and kerosene — as the country imports over 70 per cent of its crude oil requirement.
“Consumers are safe as of now but if the upswing trend persists for long, we will have to take a call on revising the fuel prices,” said a senior petroleum ministry official.
The under-recoveries to the state-owned oil marketing companies on sales of petrol, diesel, cooking gas and kerosene, which stood at Rs 5,436 crore during April-June 2009 mounted to Rs 10,670 crore during July-September 2009 and have crossed Rs 3,500 crore in October so far.
But there’s still time for the rise. “Ideally, the correction should take place now but it may not happen as the devaluation of dollar against rupee has helped neutralise the global impact,” he said. “It could get triggered at $100 (Rs 4,611) a barrel.”