Crude at $100 a barrel: What it means for the Indian consumer

Fuel prices, propelled by inflation, international politics and related policies are likely to get costlier as Brent crude hit a high note on Thursday.

After weeks of speculation over escalating tensions between Ukraine and Russia—that subsequently led to the oscillation of oil prices—the price of Brent crude hit $100 per barrel as Russia started its ‘military operation’ in Ukraine. This is a seven-year high.

Crude and related products account for over 9 per cent of the Wholesale Price Index, due to which a spike in Brent crude prices will worsen inflation in India. Subsequently, prices of LPG, CNG and even electricity may see a spike as Russia accounts for around 17 per cent of the global natural gas production.