Oil prices soared more than 6%, touching their highest since 2008 on Monday after the United States and European allies mull a Russian oil import ban while delays in the potential return of Iranian crude to global markets fuelled tight supply fears.
Desperate Russian oil companies are now offering huge discounts to India, provided a payment mechanism to bypass the SWIFT ban is quickly approved by the government. According to sources familiar with the development,
Russian oil firms are offering 25-27 per cent discount to the dated Brent crude prices.
On the other hand, India is a major crude oil importer, and for it, the price range is a cause of concern as it may add Rs 10 to Rs 30 to petrol and diesel selling prices if the OMCs decide to revise the current rates.
India imports 85 per cent of its crude oil needs. At present, fuel prices have been steady since early November when the Centre reduced excise duty on petrol and diesel by Rs 5 and Rs 10 per litre, respectively.
Since then a lot has happened on the global crude oil price front. Since early November, benchmark Brent crude oil prices have risen by over 70 per cent.
