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Indian refiners are thinking to curb their oil imports as the oil traders are forecasting that the crude oil will reach as high as $100 a barrel by the year-end and to utilize the available stored inventory as per sources from industry.
The crude oil futures have surged as the United States is going to start sanctions on Iran. The price of oil is surging along with pressure on the currencies of developing countries like Indian Rupee. India is the third largest importer of oil and might decide to cut down its crude imports to use up stocked inventory.
The rupee has been falling and has reached to a low of 72.96 against US dollar on Tuesday morning. Indian refiners pay for the crude imported in dollars and so the import costs are rising which is a challenge for the government. The petrol prices in India are the highest in the world when seen as part of GDP per person.
Indian oil companies are considering various options to put a stop to increasing costs. The oil refiners are working in coordination and will strategize out on ways to reduce the costs.