Petrol and diesel prices may rise, India's import bill could increase by $70 billion annually due to surge in crude oil prices

Given rising oil prices, a report by brokerage firm Prabhudas Lilladher predicts that oil prices will not return to their previous levels for a long time, which could increase India's import bill by $70 billion. Petrol and diesel prices may also see a rise in the coming months.

Due to US-Iran tensions, crude oil prices have nearly doubled. It is believed that once these tensions are resolved, prices will fall again and the situation will stabilize. However, brokerage firm Prabhudas Lilladher states in a report that crude oil prices are unlikely to reach $65 per barrel in the long term. The report also points to a significant increase in India's import bill and a potential increase in petrol and diesel prices in the future.

Why will it take time for the situation to return to normal?

The tensions in West Asia have not only blocked sea routes but also led to attacks on oil refineries and pipelines. Repairs to these damages will take years. The brokerage firm's report states that crude oil prices may take a long time to return to pre-war levels of $65 per barrel.

India's annual import bill will increase

The report by brokerage firm Prabhu Dass Lilladher also stated that India purchases 4.3 million barrels of crude oil daily to meet its oil needs. Rising oil prices could increase India's annual import bill by more than $70 billion. The report also stated that if normalization of traffic through the Strait of Hormuz takes time or uncertainty increases, supplies from Bab al-Mandeb could also be disrupted.

The report also states that gas and oil tankers and routes, as well as refineries, were damaged. These could take considerable time to restore and repair. Prices are likely to remain high until supplies return to normal.

Petrol and diesel prices may increase

The brokerage also noted in its report that petrol and diesel prices could also rise after the state elections. LPG and aviation fuel prices have already been increased. If oil and gas supplies to India do not return to normal, the impact could be felt by the general public.