Petrol & Diesel prices rose after a four months gap, the decision was taken by Oil Marketing Companies. OMCs on Tuesday took the decision to hike the prices of both fuels by Rs.0.8 per litre. With this news, the analysts are expecting that this hike will start the chain of hiked fuel prices. Ultimately the price of petrol can cost Rs.96.21 per litre in National Capital & Diesel can cost Rs.87.47 per litre. Also, LPG will now cost Rs.50 more, this brings the new prices of 14.2 kg cylinder to Rs.949.5 in the capital.
Petrol & Diesel Prices Will More Likely To Increase
The prices of both fossil fuels are more likely to increase further with multiple announcements. The main reason for the need to hike these prices is the high cost of crude oil due to the Russia-Ukraine conflict. On the last revision of prices by OMCs, we saw an increase in the prices of Brent crude by 40 per cent, which resulted in a price hike from $81.6 to $114.2 per barrel.
Also read
Nirmala Sitharaman: EPFO Interest Rates Are Better Than Other Schemes
OMCs Decisions
OMCs kept the prices of petrol & diesel constant for four months. We have not seen a change in prices since November 4th, as the central announced the discount on excise duty of Rs.5 per litre on petrol and Rs.10 per litre for diesel.
OMCs on Sunday decided to increase the bulk diesel prices by Rs.25 per litre. If we compare, the bulk diesel price in Mumbai is Rs.122 per litre and the price at retail outlets is Rs.95 per litre. This big difference in Bulk and retail prices of diesel has pushed the consumers to get bulk deals from retail outlets.
An official of Reliance BP Mobility Ltd, operating 1380 fuel outlets across India said, “There is a massive surge of demand at fuel stations (retail outlets) due to the increased delta of Rs 25/ltr between the retail and industrial price of diesel, leading to heavy diversion of bulk HSD (direct customers) to retail outlets. There is also the very heavy lifting of fuel by dealers and both B2B & B2C customers, who have advanced their purchases to top up their tanks and capacities in anticipation of the price increase which is overdue.”
