All section Close
As Global Crude Prices Rise, Petrol, Diesel Prices May Take Hit After Assembly Polls
Writer: Devyani Madaik
A media enthusiast, Devyani believes in learning on the job and there is nothing off limits when it comes to work. Writing is her passion and she is always ready for a debate as well.
India, 8 March 2022 5:55 AM GMT
Editor : Shiva Chaudhary |
A post-graduate in Journalism and Mass Communication with relevant skills, specialising in content editing & writing. I believe in the precise dissemination of information based on facts to the public.
Creatives : Devyani Madaik
A media enthusiast, Devyani believes in learning on the job and there is nothing off limits when it comes to work. Writing is her passion and she is always ready for a debate as well.
Reportedly, the state-run fuel retailers may raise prices by Rs 5-6 per litre in small doses to avoid adverse impacts. They will absorb the losses, pinned at about Rs 12 per litre, for a while.
With the hike in global crude prices to USD 139 per barrel (Rs 10,669.25) overnight, the petrol and diesel rates are likely to take a hit after the assembly election in five states in India. The prices are estimated to be hiked across the country.
The hike in prices is primarily after the US, and European allies explored a Russian oil import ban. The market turmoil raises concerns about the increase in the rates of everyday items from food to petrol and heating.
State-run Fuel Retailers To Increase Rates
The fuel rates have not been revised for the last four months is required to be increased by more than Rs 12 per litre by March 16 for retailers to break even, the Times of India reported.
According to the report, the state-run fuel retailers may raise prices by Rs 5-6 per litre in small doses to avoid adverse impacts. They will absorb the losses, pinned at about Rs 12 per litre, for a while. Hence, achieving any profit margins would be late. The retailers are expected to wait till the end of the assembly elections to revise the prices.
The liquid petroleum gas (LPG) rates are also expected to increase. People can expect the impact of inflation on the prices of LPG cylinders, especially in the poll-bound states - Uttar Pradesh, Punjab, Goa, Manipur and Uttarakhand.
India Vulnerable
Fuel prices are linked to international benchmarks and the dollar exchange rate, and crude prices decide the spread.
The Indian rupee sank to its lowest at Rs 77.01 per dollar on Monday, March 7. The report states that the country relies on overseas purchases to meet about 85 per cent of its oil requirement, making it one of the most vulnerable.
The government had cut excise duty on petrol and diesel in 2021, providing relief to civilians. Before these tax reductions, the rates had skyrocketed to Rs 110.04 a litre, and diesel came for Rs 98.42.
Must Reads
We are an independent and public-spirited digital media platform for Indian millennials. We report news and issues that matter as well as give you the opportunity to take action.
