India’s crude oil basket has climbed to around $99.35 per barrel, reflecting the sharp increase in energy prices caused by renewed military tensions in West Asia.
The latest level compares with around $90.19 in August and $82.04 in July, highlighting how quickly India’s energy costs have increased. Since India imports nearly 90% of its crude requirements, a sustained rise in oil prices can significantly increase the country’s import bill.
Higher crude can also affect the rupee, inflation, transportation costs and margins of companies that use petroleum-based raw materials. According to estimates cited by Financial Express, every sustained $1 rise in crude oil prices could add roughly Rs.18,000 cr. annually to India’s import bill.
The rise in energy prices has consequently emerged as one of the biggest near-term risks for the Indian economy and stock market.
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