Election voting over, brace for petrol and diesel price hike

There is a possibility that the prices of petrol and diesel may increase this week. There has been no change in fuel prices since 123 days. 

With the voting for the Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur assembly coming to an end, there is a possibility that there might be an increase in the prices of petrol and diesel. 

There is a possibility that the prices of petrol and diesel may increase this week. At present, the price of petrol in Delhi is Rs 95.45 per litre, while the price of diesel is Rs 86.71 per litre. Petrol in Mumbai costs Rs 109.96 per litre and diesel Rs 94.13 per litre. 

There has been no change in the price of petrol and diesel in the country since 123 days. 

Due to the ongoing war between Russia and Ukraine, the price of crude oil had increased manifold in the last 11 days. The price of crude oil has reached a 13-year high of US $140 per barrel. Due to this, the price of petrol and diesel is likely to increase this week. 

According to reports, oil manufacturing companies had been refraining from revising the oil prices since over four months in the wake of assembly elections in five states, including Uttar Pradesh. 

The West Texas Intermediate crude futures, the US oil benchmark, rose to $130.50 a barrel on Sunday evening. This is the highest since July 2008. International benchmark Brent crude rose to an overnight high of $139.13. This is the highest level since July 2008. The fall in the value of the Indian rupee can also have an impact on the price of oil. The Indian rupee fell to a record low of 76.9812 per dollar on Monday.

India buys about 85 per cent of its oil requirement from abroad. From 2017 onwards, the fuel prices are to be fixed daily in line with the benchmark international rate in the last 15 days, but with effect from November 4, 2021, the rates are on freeze. 

According to the information from the Petroleum Planning and Analysis Cell of the oil ministry, the price of crude oil purchased by India had reached $111 per barrel on March 1. It was at $81.5 a barrel four months ago. An oil industry official said with the final phase of voting ending on Monday, it is now expected that the government will allow state-owned fuel retailers to return to daily price revision.