Oil Prices Likely to Increase to Rs. 83.14 After Attack on Saudi Oil Plants

Guwahati, September 16, 2019:

Oil prices are likely to rise to about Rs. 83.14 following the attack on two oil plants in Saudi Arabia.

On Saturday, two oil plants were attacked, wiping out about half of Saudi’s oil production. The incident on oil plants has triggered a panic as oil prices jumped to nearly 12% and in India, its impact is likely to raise the petrol and diesel prices in the coming days.

Presently, in Guwahati, a litre of petrol is selling at Rs. 74.24. If the trend of 12% increase is followed, it is likely that the petrol price will go upto Rs. 83.14.

In a statement, the state-run oil company, Saudi Aramco said that the attack will affect over 5% of global oil supply. The price of Brent Crude has reached its highest rate in the last 28 years. Globally, its price rose to about 20%.

According to Kotak Institutional Equities, the increase in global crude prices will have a negative impact on oil marketing companies such as BPCL, HPCL and IOCL and Castrol.

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It stated that original manufacturing companies would have to raise the retail price of diesel and gasoline by Rs5-6/liter in the following fortnight in order to increase its product prices.

A litre of petrol was selling at Rs. 71.89 in Delhi, Rs. 77.57 in Mumbai, Rs. 74.70 in Chennai, Rs. 74.62 in Kolkata while diesel prices were at Rs. 65.28, 68.99 and Rs. 68.46 and Rs. 67.69 in Delhi, Mumbai, Chennai and Kolkata.

India imports about 70 per cent of crude requirements and therefore, there is a high possibility of hike in petrol and diesel prices.

On Saturday, two major oil plants were attacked, slashing about half of the country’s oil production. While Yemen’s Houthi group claimed responsibility, US blamed Iran for the attack.

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