Due to the Russia-Ukraine war, now many countries including India are getting crude oil from Russia at cheap prices. At the same time, there is news that in order to crack down on Russia, European countries have made a plan to cap the prices of crude oil in Russia.
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Russia-Ukraine War (Russia-Ukraine War) its economy from the sanctions of western countries between (Russian Economy) Russia bought crude oil at cheap prices to save (Crude Oil price) Figured out a way to sell. This benefited the big consumer countries of crude oil like India and China, but now soon there may be a crisis in this system. The reason is that western countries are considering capping the prices of crude oil coming from Russia. Now it remains to be seen whether this will affect India as well, and the petrol prices in India (Petrol price in India) Will it grow?
According to a Mint news, European Union countries have fixed the price of Russian crude oil at $65 to $70 per barrel. (Cap on Russian crude oil price) Made up my mind to do. This is much more than the cost of producing crude oil in Russia. There is a possibility of damage to Russia’s crude oil business by imposing such a high price cap, but Russia is currently selling crude oil at a huge discount, so it is possible that the effect of this step may not be that much.
G7 countries can fix the price
According to the news, the G7 countries can first cap the price of Russian crude oil at $65-70 per barrel. While many EU countries believe that this price is equal to the average price before Russia invaded Ukraine. This is too much according to the present circumstances. In this regard, a meeting of the ambassadors of the European Union took place on Wednesday.
What is the reason for the price cap on Russian oil?
The thing to think is that what is the need of this capping on Russian oil? In fact, western countries want to limit the income of Russia along with not allowing oil prices to rise in the world, so that its power can be reduced in the Russia-Ukraine war. But due to the purchase of big consumer countries like India and China, Russia does not seem too worried about this because it is already selling oil to them at cheap prices.
However, after the price cap is implemented, if companies buy crude oil from it at a lower price, then they will not be given shipping, insurance and financial assistance. Along with this, many more facilities will be deprived and the risk of crude oil business will increase.
Will petrol be expensive in India?
India has been importing large quantities of oil from Russia since the Ukraine war. (India crude oil import from Russia) is buying. He is getting this oil at a huge discount. That’s why oil trade continues between the two countries despite the harsh attitude of the western countries. In such a situation, it is believed that the price cap on Russian oil will affect India as well. However, if the price cap remains between 65 to 70 dollars, then it will be a similar situation for India because India is getting crude oil from Russia at around this price.
Recently, Petroleum and Gas Minister Hardeep Singh Puri, while answering the questions related to the price cap, said that there is no pressure on the Government of India regarding the price cap of G-7 and European Union.
English Headline: West considering to cap on Russian crude oil will impact on petrol price in India