<p>Saudi Arabia's Aramco has ensured undisrupted oil supply to India, Petroleum Minister Dharmendra Pardhan said Monday after a weekend attack on the Saudi's largest oil processing plant.</p>.<p>"Top executives of Aramco have been contacted. Indian ambassador in Riyadh has contacted the senior management of Aramco to ensure a steady supply to India,” Pradhan said amid a double-digit rise in crude oil prices on Monday.</p>.<p>He said he has also reviewed the September oil supplies with the state-owned oil management companies and is closely monitoring the evolving situation in the Middle East.</p>.<p>Saudi Arabia supplies 1 million per day to global oil consumers and is the second-largest supplier to India after Iraq.</p>.<p>Brent crude futures rose over 19% to trade at $71 a barrel in Asia. This was the biggest gains in percentage terms since 1991.</p>.<p>India, which is a net importer of crude oil and ships 80% of its requirement from abroad, can be impacted in many ways.</p>.<p>While the first round impact can be felt on the petrol and diesel prices, in the second round prices of all other commodities could be jacked up through a jump in transportation cost.</p>.<p>A $10 jump in crude oil prices will force the oil companies to hike petrol and diesel prices by up to Rs 6 per litre. A prolonged hike in oil can put pressure on refining margins of the domestic companies too.</p>.<p>Besides, a back-of-the-envelop calculation suggests that every dollar rise in crude prices increases India's import bill by $1.5 billion and every $10 rise impacts the economic growth of the country by up to 40 basis points.</p>.<p>India's economy has slowed to a 6-year low of 5% in the April-June period of 2019-20 and the country can ill-afford to grow lower than 8% if it wants to be a $5 trillion economy by 2024-25.</p>
<p>Saudi Arabia's Aramco has ensured undisrupted oil supply to India, Petroleum Minister Dharmendra Pardhan said Monday after a weekend attack on the Saudi's largest oil processing plant.</p>.<p>"Top executives of Aramco have been contacted. Indian ambassador in Riyadh has contacted the senior management of Aramco to ensure a steady supply to India,” Pradhan said amid a double-digit rise in crude oil prices on Monday.</p>.<p>He said he has also reviewed the September oil supplies with the state-owned oil management companies and is closely monitoring the evolving situation in the Middle East.</p>.<p>Saudi Arabia supplies 1 million per day to global oil consumers and is the second-largest supplier to India after Iraq.</p>.<p>Brent crude futures rose over 19% to trade at $71 a barrel in Asia. This was the biggest gains in percentage terms since 1991.</p>.<p>India, which is a net importer of crude oil and ships 80% of its requirement from abroad, can be impacted in many ways.</p>.<p>While the first round impact can be felt on the petrol and diesel prices, in the second round prices of all other commodities could be jacked up through a jump in transportation cost.</p>.<p>A $10 jump in crude oil prices will force the oil companies to hike petrol and diesel prices by up to Rs 6 per litre. A prolonged hike in oil can put pressure on refining margins of the domestic companies too.</p>.<p>Besides, a back-of-the-envelop calculation suggests that every dollar rise in crude prices increases India's import bill by $1.5 billion and every $10 rise impacts the economic growth of the country by up to 40 basis points.</p>.<p>India's economy has slowed to a 6-year low of 5% in the April-June period of 2019-20 and the country can ill-afford to grow lower than 8% if it wants to be a $5 trillion economy by 2024-25.</p>
