NEW DELHI: Indian basket crude prices returned to pre-conflict levels Wednesday, with the basket priced at $70.71 per barrel, reducing the import bill, easing inflationary pressures and improving the financial position of the Centre and oil marketing companies.
The Indian basket of crude oil is a derived basket comprising the sweet grade of Brent Dated and the sour grade Oman and Dubai average, imported by refineries each month. It averaged $69.01 per barrel in Feb but rose to $113.49 in March and $114.48 in April before softening marginally in May. The basket has averaged $86.31 per barrel in June so far. Global benchmark Brent crude, which had touched $120 per barrel at the peak of the West Asia conflict, is hovering around $74 per barrel, its lowest level since the outbreak of the conflict.While official data were not available, govt had earlier this month estimated daily losses at around Rs 700 crore.The softening in crude prices is unlikely to be reflected in retail fuel prices anytime soon, as international FOB (free on board) prices of petrol and diesel continue to average around $110 and $123 per barrel, respectively, this month.
