The new trade agreement signed between India and America on Monday is already at the center of discussion in the international arena. However, the most important aspect of this agreement is that India will now be able to buy crude oil from America instead of Russia. That is why the question is being raised in the minds of the common people, will this result in an increase in the price of petrol and diesel? Because, the oil that India had bought from Russia so far had the biggest discount. But what impact can the new decision have on the price of fuel? Find out more.

What will be the impact on the price of petrol and diesel?

For a long time, India had been buying crude oil from Russia at a low price. This cheap oil gave relief to the country’s economy. However, according to the new agreement, that discount from Russia will no longer be available. American oil is usually a little more expensive than the Russian discount. If the transportation costs are added to it, the cost of oil may increase further after reaching India. And according to experts, this will have a direct impact on the price of petrol and diesel. The price may even increase by Rs 2 to 3 per liter.

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But there is another twist here. Because, the energy deal with America is also bringing several benefits to India. First, America is the world’s largest oil producer. And in a volatile situation like the Russia-Ukraine war, getting oil from America means security of supply. Second, the rupee has strengthened by about 40 paise against the dollar on Monday after the trade deal. And if the rupee strengthens further, it will cost less dollars to buy oil. As a result, the pressure may decrease. Third, Indian refiners are mainly suitable for refining America’s ‘light sweet crude’. As a result, the cost of oil refining may be much lower.

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However, experts are expressing their opinion that the government will not want to increase the prices of petrol and diesel at present. Because, the central government may not want to put the pressure of price hike on the common man right after the Budget 2026. But if the price of crude oil suddenly increases in the international market, in that case, it goes without saying that the pockets of the common man will be affected in the future if cheap oil from Russia is not available.