Petrol and diesel prices, after reporting a new high on Tuesday, are expected to continue their upward spiral following cues from the global markets amidst a slow US output restart. With crude oil rising above $66 per barrel in the international market and no hint of scaling back of taxes from the government, fuel prices are expected to reach fresh highs in India.
State oil marketing companies have also raised pump petrol and diesel prices by 35 paise per litre each on Tuesday. With the latest round of increase, the price of petrol remained stagnant at yesterday’s prices in all four metros. Currently, the price of petrol in New Delhi is Rs 90.93 per litre. In Kolkata, petrol now costs Rs 97.34 per litre in Mumbai and Rs 92.90 per litre in Chennai.
In comparison, the diesel prices too edged upwards in India. The diesel rates in the country stood at Rs 81.32 per litre in New Delhi, Rs 84.20 per litre in Kolkata, Rs 88.44 per litre in Mumbai and Rs 86.31 per litre in Chennai.
According to an Economic Times report quoting investment bank Goldman Sachs, the price of crude oil is expected to rise up to $70 by the second quarter of the year. The report also mentioned amid wider Covid-19 vaccine roll out, increased economic activity and few other factors by key producers are boosting oil prices that have been rising since October last year.
The Reserve Bank of India (RBI) had stated that a ‘calibrated unwinding’ of high taxes on both fuels in a coordinated manner by both Centre and State governments will be key to contain further build-up of cost pressure in the economy.
Due to the constant rise in rates since January this year, petrol and diesel prices have been breaching record highs in India. In some parts of Maharashtra and Rajasthan, petrol price per litre has already breached Rs 100 mark due to a combination of high centre and local taxes.
However, four states have taken the initiative of reducing the burden on consumers by lowering state-related taxes on both fuels. The states of West Bengal, Rajasthan, Assam, and Meghalaya reduced taxes in the last two weeks.
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