State-owned fuel retailers are losing around Rs 5 per litre on petrol and Rs 23 per litre on diesel as renewed tensions in West Asia pushed international crude oil prices above $100 a barrel, analysts said on Wednesday.Brent crude, the global benchmark, rose 2.5 per cent to above $100 a barrel, while US West Texas Intermediate gained nearly 2 per cent to around $95. Brent last touched the $100 mark on July 23.India, the world’s third-largest oil importer and consumer, imports more than 88 per cent of its crude oil requirements. Higher crude prices increase the country’s import bill and can put pressure on the trade deficit and the rupee.With retail petrol and diesel prices unchanged, fuel retailers are absorbing the higher international costs. Prashant Vasisht, senior vice-president and co-group head, corporate ratings, ICRA, said marketing margins on petrol and diesel had turned negative, while domestic LPG was also seeing under-recoveries.“At the average price for the month of September till date, marketing margins on petrol are negative Rs 5 per litre and diesel at negative Rs 23 a litre and under recoveries on domestic LPG are at Rs 200 per cylinder,” he said, as quoted by PTI.Retail petrol and diesel prices have remained unchanged for more than three months. Rates were last revised on May 25, when petrol was raised by Rs 2.61 a litre and diesel by Rs 2.71. In all, petrol prices were increased by Rs 7.35 a litre and diesel by Rs 7.53 through four revisions in the second half of May.The crude oil import bill rose more than 56 per cent to $63.4 billion during April-July from $40.5 billion in the same period last year, according to the Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC). Import volumes remained broadly unchanged at 81.9 million tonnes, compared with 81.5 million tonnes a year earlier.The Indian crude basket averaged $108.91 a barrel on September 8, with the September average so far at $102.11, against $90.19 in August and $82.04 in July.Rajeev Sharan, head of research at Brickwork Ratings, said Brent’s rise above $100 was driven mainly by US-Iran tensions and supply concerns around the Strait of Hormuz. “With OPEC+ holding output steady and geopolitical risk still high, prices are likely to stay firm and volatile through the coming month, easing only if tensions cool,” he said.Higher crude prices could raise costs for aviation, paints, tyres, chemicals, logistics and FMCG companies, while also adding to inflation and pressure on the rupee.“We expect it (RBI) to hold the repo rate at 5.25 per cent and stay watchful. A tightening bias cannot be ruled out if Brent stays above USD 100 and feeds into broader inflation,” Sharan said.
