Mumbai: Oil prices soared past $100 for the first time in more than seven years on Thursday after Russian President Vladimir Putin announced a “military operation” in Ukraine, apparently realising fears he would invade.
Russia is the world’s second-largest oil producer, which mainly sells crude to European refineries, and is the largest supplier of natural gas to Europe, providing about 35% of its supply.
Despite a surge in international prices, Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp – which together control more than 90% of the domestic market – have frozen petrol and diesel rates for over three months. Analysts expect petrol and diesel prices to go up sharply in India after state elections end next month, adding pressure on the government and the central bank to take steps to contain inflation.
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