Representative imageNEW DELHI: Falling global energy prices after a preliminary US-Iran agreement to end hostilities and reopen the Strait of Hormuz may bring relief to Indian refiners and gas consumers. Refiners have been selling petrol, diesel and domestic LPG below market rates, while users have faced sharp increases in gas prices, including CNG.Brent crude slipped to nearly $83 per barrel Monday, a significant development for India, which imports nearly 88% of its crude oil requirement. The rate at which Indian refiners procure crude, was recorded at $86.77 per barrel Friday, the latest available price, and is expected to decline following the fall in global energy prices.Spot LNG prices jumped from around $10 per million British thermal units (MMBtu) before the crisis to as high as $25 per MMBtu, before moderating to an average of about $18 per MMBtu now.When asked whether it could also lead to a reduction in petrol and diesel prices, Sujata Sharma, joint secretary in petroleum ministry, said it was too early to comment.
Brent slips on US-Iran deal, situation may ease for India
NEW DELHI: Falling global energy prices after a preliminary US-Iran agreement to end hostilities and reopen the Strait of Hormuz may bring relief to Indian refiners and gas consumers. Refiners have been selling petrol, diesel and domestic LPG below market rates, while users have faced sharp increases in gas prices, including CNG.
TL;DRAI
US-Iran agreement reduces Brent crude to $83/barrel, easing pressure on Indian refiners who import 88% of crude demand. Moderating LNG spot prices relieve cost pressure on petrol, diesel, and CNG, narrowing the inflation impact on energy-dependent operations.
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