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Fuel prices in India might soon go up thanks to rising tensions in Saudi Arabia. A recent attack on Saudi Arabian oil fields has led to falling economies and loss of millions of dollars. This is leading to an increase in the prices of crude oil and along with an increase in crude oil prices will come an increase in the prices of petrol and diesel.
Saudi Arabia is the hotspot of oil production for global markets. Several countries are dependent on Saudi Arabia for their oil supplies and India is one of those countries. However, all the countries dependent on the middle-eastern country now appear to be in the lurch after an attack on two oil mining facilities in Saudi Arabia.
Saudi Arabia's state-owned company Aramco is the world's largest oil company, meeting roughly about 10 percent of the global oil requirements. Well, it was only two days ago that Aramco's Khurais and Abqaiq oil facilities were attacked by drones.
The facility in Khurais is an oil field capable of producing around 1.5 million barrels per day. The one in Abqaiq is an oil processing facility with the capability of processing more than 7 million barrels per day.
The attacks were carried out by Houthi groups backed by Iran, to pressurise Saudi Arabia into stopping their campaign in Yemen. These are regional issues that have now become a global headache.
The Arab Gulf without doubt has the largest deposit of oil in the world, and this leads most countries' dependence on them. Now, with the attacks on just two of the many facilities in the region, international crude oil prices shot up to $71.95 (Rs 5,144) per barrel.
That is a 19.5 percent increase and it could spell trouble for other countries. To this, most countries will add shipping costs, refining costs, retail costs and taxes, thereby making fuel extremely expensive.
The average motorist and end users of fuels like petrol and diesel are the ones who will actually feel the bite of the increase in fuel prices. Saudi Arabia has vouched to quickly restart supply of oil, but the market has already been affected and a price hike is on its way.
More than 85 percent of India's fuel is imported and Saudi Arabia has so far been the largest supplier of oil to India. As supply dwindles, thanks to the attacks on Aramco, the price of fuel in India too will go up.
The current price of Petrol in Bangalore is Rs 74.6 per litre and the current price of diesel in Bangalore is Rs 67.81 per litre. Given the current scenario, these prices will slowly and gradually increase since the government cannot allow a sudden and steep hike in prices.
Thoughts On Petrol & Diesel Prices In India Going Up Due To Attack On Saudi Arabian Oil Fields
The Arab Gulf has been a hotspot for trouble between various countries and militant groups thanks to the vast reserves of oil there and the wealth it brings. However, the situation is such that every single time there is turmoil in the region, the citizens of most countries around the world end up paying the price for it. The same is set to happen now in India too.