The Crude Oil May Cross $ 120, Petrol-diesel Prices Increase

The crude oil may cross $ 120, and petrol-diesel prices may increase due to the decision of the European Union.

The European Union (EU) has decided to phase out sanctions on crude oil imported from Russia. After this, crude oil prices in the international market have again crossed $ 120 per barrel.

Brent crude prices touched USD 124.10 per barrel during trading on Tuesday, the highest level since March 9. EU leaders have agreed to ban 90 percent of crude oil imported from Russia.

This ban will be imposed in a phased manner over the next six months. However, this restriction will not apply to pipelines supplying oil to Hungary.

The crude oil may cross $ 120: Many countries like Hungary, Czech, Bulgaria, Slovakia, and Romania are not in favor of an immediate ban on buying crude from Russia.

These countries are completely dependent on Russia for the supply of crude oil. At the same time, other European countries also import a lot of crude from Russia.

However, now after the attack on Ukraine, these countries have started buying cruder from Gulf countries and from America.

On the other hand, oil companies say that despite the reduction in excise duty, they are facing losses on petrol and diesel.

Let us inform you that on May 21, 2022, the Central Government cut the excise duty on petrol by Rs 8 and on diesel by Rs 7 per liter.

Due to this, petrol has become cheaper by Rs 9.5 and diesel by Rs 7 per liter.

On this, oil companies say that they are facing a loss of Rs 9.5 on petrol and Rs 23 per liter on diesel.

External Affairs Minister S Jaishankar responded to this pressure by saying that the amount of crude that India buys from Russia in a year, European countries buy in an afternoon.

Government sources say that after February 2022, India is buying cruder than Russia.

Earlier, where India has been taking 1 percent of its total imports from Russia.

From February-May 2022, it has bought five percent of the total imports from Russia. Russia is giving crude to India at cheap rates.