New Petrol and Diesel Prices Announced as Oil Costs Rise
Listen to the story
New petrol and diesel prices have been announced in India today.
The government's recent statement about ethanol could also affect fuel rates in the coming days.
At the same time, global crude oil prices have risen again, moving past 90 dollars per barrel.
This increase comes as the world oil market faces a shortage of about 1.1 billion barrels.
The IMF, an international organisation that monitors global finance, has issued a warning about this situation.
It said that even if the Strait of Hormuz remains fully open, oil supply problems may continue.
The Strait of Hormuz is an important sea route used to transport oil around the world.
Rising crude oil prices are a concern for India, which depends heavily on foreign oil.
As prices climb, India's import bill, the total cost of goods bought from other countries, is expected to increase.
This could also put pressure on the Indian rupee, since more money will be needed to pay for oil imports.
A weaker rupee can make imported goods more expensive across the economy.
Experts are watching closely to see how fuel prices and the rupee react in the coming days.
The government has not confirmed exactly how the ethanol statement will change fuel pricing.
Vocabulary9 words
- petrol
- fuel used to run cars
- diesel
- a fuel used mainly in trucks and some cars
- ethanol
- a plant-based fuel mixed with petrol
- crude oil
- raw natural oil before it is refined into fuel
- barrels
- standard units used to measure amounts of oil
- IMF
- an international group that watches over world money issues
- Strait of Hormuz
- a narrow sea passage used for shipping oil
- import bill
- the total money a country spends on goods bought from abroad
- rupee
- India's official currency
Quiz
Answer key
1. Oil supply problems even if the Strait of Hormuz stays open 2. 1.1 billion barrels 3. Because crude oil prices have risen
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
New _____ and _____ prices have been announced in India today.
The government's recent statement about _____ could also affect fuel rates.
Global _____ prices have risen again, moving past 90 dollars per barrel.
This increase comes as the world oil market faces a shortage of about 1.1 billion _____.
The _____, an international organisation that monitors global finance, has issued a warning.
It said that even if the _____ remains fully open, oil supply problems may continue.
As prices climb, India's _____ is expected to increase.
This could also put pressure on the Indian _____.
A weaker rupee can make imported goods more expensive.
Discussion questions
- Why do rising oil prices affect a country's currency?
- How might higher fuel prices affect ordinary people in India?
- Why is the Strait of Hormuz important for global oil supply?
- What could governments do to reduce dependence on imported oil?