New Delhi : Following Russian attack of Ukraine, international crude prices shot past $100 per barrel – a high witnessed for first time since 2014.
The spike holds wide ramifications for India, given that 85 percent of the crude processed by domestic oil companies comes imported.
The ripples are set to be felt across the sectors. High crude prices will trigger surge in inflation, cost of inputs for various industries, higher transportation costs and swell import bills.
Incidentally, the Budget for 2022-23 and RBI’s monetary policy committee estimated crude to average between $70 -75 per barrel this year although Economic Survey of 2021-22 had warned the risk of imported inflation arising out of higher global energy prices.
