New Delhi: The Russia-Ukraine crisis is likely to have a fallout in India too, with a rise in the prices of essential commodities.
The price of various commodities such as natural gas and wheat will increase in the near future.
Russia is one of the biggest producers of crude oil. The current crisis can lead to prices shooting up to more than $100 per barrel in the days to come. The Ukraine-Russia crisis has pushed Brent crude oil price to $96.7 per barrel, the highest it has been since September 2014. An increase in crude oil price will have a spillover impact on global GDP, India Today reported.
The rise in crude oil prices is expected to increase the subsidy on LPG and kerosene.
If the Russia-Ukraine crisis continues to simmer, India could see an increase in petrol-diesel prices. Oil consists of around 25 per cent of India’s total imports. India imports more than 80 per cent of its oil requirement. A rise in oil prices will impact the current account deficit, the report added.
Russia is also the world’s largest exporter of palladium, a metal used in automotive exhaust systems and mobile phones. Its price has also soared in recent weeks amid fears of sanctions being imposed on Russia.
