Trump Russia Tariff / Trump's threat and Putin's insistence, will petrol cost Rs 125 in India?

US President Donald Trump has threatened to impose a 25-50% secondary tariff on buyers of Russian crude oil. This can have a big impact on India, as India meets 30% of its oil needs from Russia. Petrol can reach Rs 125 due to the increase in prices.

Trump Russia Tariff: US President Donald Trump recently threatened to impose secondary tariffs ranging from 25% to 50% on buyers of Russian crude oil. This statement comes at a time when he has already discussed a ceasefire with the presidents of Russia and Ukraine. However, Russia has not yet complied with the agreement, whose terms were set by Trump himself. Responding to this, Trump clarified in an interview that if Russia does not stop the violence in Ukraine, he will tighten restrictions on Russian oil and impose heavy tariffs on countries purchasing it.

Concerns for India

India imports more than 30% of its total crude oil from Russia. If US sanctions result in tariffs on Russian oil, India will have to deal with expensive crude. This move could disrupt Russian oil supply in the international market, leading to a price surge that might push crude oil prices above $100 per barrel.

The US has already imposed tariffs on Venezuelan oil, and sanctions on Iranian oil are already in place. Additionally, Gulf countries are also reducing supply, which could lead to a decline in global oil availability. Moreover, US oil reserves and production are limited, which could further drive up crude oil prices.

Potential Impact on the International Market

If Trump enforces his statement, international crude oil prices could surge. Currently, Brent crude oil prices stand at around $73 per barrel. Experts suggest that if Russia's 11% contribution to global production is halted, prices could exceed $100 per barrel.

This situation could be challenging for India, as it is already unable to buy oil from Iran due to US sanctions. As a result, India will need to seek alternative suppliers, which may prove to be more expensive than Russia. This will increase India's overall import costs and impact petrol and diesel prices.

Could Petrol Prices in India Reach ₹125 per Liter?

At present, the average petrol price in India is around ₹100 per liter. If international crude oil prices rise above $100 per barrel, petrol prices in India could reach ₹125 per liter. However, the US is also struggling with inflation and may not allow crude oil prices to skyrocket.