Indian Crude Oil Basket Price Rose Back-Up Close to $100 A Barrel On April 12, Reflecting Global Markets' Wild Gyrations

The see-saw in global oil markets in recent weeks, with the volatility the most since June 2020, was reflected in the latest Indian crude oil basket data.

Indeed, the Indian crude oil basket price rose to $99.86 per barrel on April 12, 2022, at an exchange rate of Rs 76.11 per dollar, up from $97.82 per barrel the previous day at (Rs/$) 75.96.

While the latest data for the Indian oil price is still lower than $103.02 per barrel on April 1, and the $112.87 average in March, the rupee's weakness is eroding that advantage.

Indeed, on April 1, 2022, the $103.02 per barrel price was at an exchange rate of (Rs/$) 75.81.

A weakening currency suggests more rupees paid in exchange for dollars, wiping out some advantage in the fall in the Indian crude oil basket prices.

The Petroleum Planning and Analysis Cell's report released on Wednesday showed the Indian crude basket prices had risen to $99.86 per barrel on April 12, 2022.

While that is lower than the average price in March, it is higher than the Indian crude oil basket price average of $84.67 per barrel in January, $94.07 in February, and significantly higher than the average cost in April last year of about $63 per dollar.

The recent softening before the latest data had increased calls for fuel rate cuts, but the rise back up towards $100 a barrel on Tuesday does not bode well for consumers, who have seen petrol and diesel prices rise by a total of Rs 10 since late March.

State retailers restarted price revisions on March 22 after a four-month hiatus - hiking xx times in the last xx days.

Petroleum Ministry sources had told NDTV on April 6 that "Indian crude oil prices still remain high." 

"The price of crude oil in the international market remains high, with the Indian crude oil basket still hovering around $104 per barrel today," Petroleum Ministry Sources had told when asked about the softening trend back then. 

"It used to be around $70 to $80 per barrel some months ago," the sources had added.