On the sidelines of an event in Bhuvneshwar, Union Minister for Petroleum and Natural gas Dharmendra Pradhan blamed US’ isolated policies for increasing fuel prices in the international market.
Pradhan said, “Due to the isolated policies of America, the value of currencies across the world has fallen in comparison to the US Dollar. India’s currency has also been affected and the price of fuel has increased abnormally.”
He added, “both the factors, rise in fuel pieces and devaluation of Rupee, which are affecting the economy of India are external reasons.”
Indian Rupee slumped to record low of 71.10 against US Dollar on Monday on demand for the US Dollar amid rising crude prices, whereas the petrol and diesel prices are touching the new record high in the country.
Since 2011 Indian Rupee has fallen more than 60% in comparison to US Dollar. Now the boiling crude may affect India’s import bill, that may widen the current account deficit and Rupee may fall further.
Crude oil prices are rising sharply after US president Donald Trump withdrew from Iran Nuclear Accord and announced to re-impose sanctions on Iran. US sanctions on Iran’s Oil and gas sector will be in full implementation from November 4, 2018, targeting Iran’s oil exports to zero.
Iran is the third biggest supplier of crude oil to India and agreed to provide the longer credit time period and additional benefits, including competitive prices, if India continues to trade with Iran even after US sanctions on Iran are in full force.