Price of Indian basket crude soared to $118.06 per barrel as on June 7 at an exchange rate of (Rs/$) of Rs 77.72 according to data released by Petroleum Planning and Analysis Cell (PPAC).
At the same time, the average price of Indian basket crude oil in June (till Tuesday), rose to $117.01 per barrel, the PPAC data showed.
The surge in average Indian basket crude price is significant as in May 2022, the average price was 109.51 per barrel.
Despite crude oil prices surging, fuel prices in the country have been on a freeze since May 22, 2022 and oil marketing companies have been indicating to the Government about under-recoveries.
Though refiners have been regularly buying Russian crude at discounted prices and analysts have said that this may to an extent, help cover their losses, the rising crude prices are gradually putting pressure on their margins.
With the Russia-Ukraine war going on for more than 100 days, the global crude oil prices are likely to surge and remain in and around the $110 and $120 per barrel range in the near future.