The price of Indian crude rose to $118.06 a barrel on June 7 at an exchange rate of (Rs/$) 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 rose to $117.01 a barrel in June (until Tuesday), PPAC data showed.
The increase in the average crude oil price in the Indian basket is significant, as in May 2022 the average price was 109.51 per barrel.
Despite rising crude oil prices, fuel prices in the country have been frozen since May 22, 2022 and oil marketing companies have notified the government of insufficient recoveries.
While refineries regularly buy Russian crude at discounted prices and analysts have said this could help cover their losses to some extent, rising crude oil prices are gradually putting pressure on their margins.
With the war between Russia and Ukraine raging for more than 100 days, global crude oil prices are likely to rise and remain in and around the $110 and $120 a barrel range for the foreseeable future.