Petrol, Diesel Price Can Increase After May 19th: Here Is The Shocking Reason!
May 19th will be an important date this year, because, after that, petrol and diesel prices are expected to increase by a significant margin across India.
At this point in time, this is speculation, but if we believe the logic presented by financial experts, then this can be a reality.
Find out why the price of petrol and diesel can increase after May 19th.
Petrol, Diesel Price To Go Up After May 19th: The Shocking Reason
First of all, May 19th is the date when Lok Sabha elections in India will be over, and on May 23rd, a new Govt. will take charge.
Now, the US has imposed sanctions on Iran, due to which global supply of crude oil has decreased significantly, all over the world. These sanctions came into effect from May 2nd.
As per some calculations, around 4% of crude oil supply has decreased.
If 4% supply of raw supply is decreased then its quite obvious that the price will shoot up. How much, we don’t know yet.
Vivek Kaul from Mint reports: “When 4% of the global oil supply is taken away from the market, the price is bound to go up.” As per him, the price of petrol and diesel has already increased in some markets outside India.
But Why The Price of Petrol Has Not Increased Right Now?
Yes, this is a logical question. President Trump imposed the sanctions on Iran effective May 2nd, and global crude oil price has already increased.
But since this is election time, Govt. avoided passing on the burden to the consumers, as it could have negatively affected the voting pattern.
As per Mint, price of crude oil has increased by 10% globally, but there has been no effect in the price of petrol and diesel in India.
What Is The Price Of Oil Right Now?
As of May 3rd, the price of a barrel of crude oil is $70.70, which has increased from $52.40 which was the price in January.
This price is subjected to the Indian basket of crude oil, which is imported from outside.
The recent discovery of shale oil in the US and Canada prevented the increase in oil prices, otherwise, the price of a barrel would have been more than $80 by now.
Now, political conditions are very important. In case US-Iran escalation increases, the price of crude oil can increase by several points.
We will keep you updated, as we receive more news on this matter.