Report: Petrol, Diesel prices expected to rise by Rs 15-22 per litre

Hostilities between Russia and Ukraine, along with sustained demand, is expected to keep global crude oil prices in the range of $95-to-$125 per barrel in the short term.

Consequently, the geopolitical crisis-led global hike in crude oil prices is expected to push India's domestic prices of petrol and diesel by Rs 15-22 per litre. It is widely expected that the OMCs will revise the current prices on or after March 7, which is the last day of voting in the ongoing state assembly elections.

However, an excise duty cut may dampen the impact on petrol and diesel prices to an extent, but not entirely. At present, India imports 85 per cent of its crude oil needs. Besides, the cascading effect of higher fuel costs will trigger a general inflationary trend.

Already, India's main inflation gauge Consumer Price Index (CPI) which denotes retail inflation, has crossed the target range of the Reserve Bank of India in January.

The rise was blamed on high commodities costs.

As per industry calculations, a 10 per cent rise in crude oil prices adds nearly about 10 basis points in CPI inflation.

Lately, the crisis as well as fears of lower supplies have pushed Brent crude oil price to a 10-year-high level of nearly $120 per barrel.