After petrol, now edible oil puts kitchen budget on fire, increases upto 60% in a year

New Delhi: Common man, reeling under high inflation is also facing double attack on oil prices --both consumer fuel including petrol and diesel and edible oil.

On the one hand, where while prices of petrol and diesel are constantly burning a hole in the pocket of common man, now expensive edible oil also seems to be spoiling the kitchen budget.

In the last one year, while there has been an increase of 95% in the prices of crude on one hand, on the other hand, the prices of various sorts of edible oil have become expensive by 30 to 60% in the last one year, which is doubly hitting the consumer.

Crude palm oil has reached record highs. Soybean and Soya oil prices have also witnessed newer highs with prices increasing between 30% to 60% in a year, as a result of which edible oil has become so expensive. 

Why is edible oil becoming so expensive?

Global supply of edible oil has decreased, demand for crude palm oil for by-fuel has increased, demand for soybean is also increasing in China. Due to inclement weather in Brazil, Argentina, the production has been affected and there has been an increase in consumption in the domestic market as well. During the festive season, the demand for edible oil will increase and the prices can go up further, as has been speculated.

Meanwhile, on the crude oil front, India has asked state refiners to speed up the diversification of oil imports to gradually cut their dependence on the Middle East after OPEC+ decided last week to largely continue production cuts in April, Reuters stating two sources said.

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India, the world`s third biggest oil importer and consumer, imports about 84% of its overall crude needs with over 60% of that coming from Middle Eastern countries, which are typically cheaper than those from the West.