The Hindu Business Line : Indian crude basket set to soar

New Delhi, June 7 The Indian crude basket, which closed marginally down at $119.81 a barrel on Thursday, is estimated to scale new heights in tandem with the surge in international crude prices on Friday.

India’s crude oil basket price on Thursday was 44 cents down from Wednesday. Indications are the Indian basket could have touched $130 a barrel on Friday before easing down. The Indian basket comprises Oman-Dubai sour (high sulphur) grade crude and Brent dated sweet (low sulphur) crude in a 61.4:38.6 ratio.

Price hike

The Government has raised the domestic retail selling price of petrol, diesel, and domestic liquefied petroleum gas on June 4, taking into account Indian basket prices at $113 a barrel. The global crude prices were holding above $123 a barrel in New York Mercantile Exchange electronic trading on June 4.

Apart from the price hike, the Government had also announced duty cuts, oil bonds, and higher upstream contribution to compensate the oil marketing companies, which were suffering heavy revenue losses for selling petroleum products below the cost price.

The revenue loss for the fiscal was estimated at Rs 2,45,305 crore. The compensation package was worked out taking the Indian crude oil basket numbers of May 21, which was at $125.25 a barrel.

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