Petrol, Diesel Price Increased By Rs 10 In 16 Days: Experts Say That Prices Will Rise Further (Find Out Why?)

We are dazed and confused about the continuously rising price rates of petrol and diesel. And this is not the end – the prices are expected to rise in the coming days as well.

The prices of the fuels have been increased by around Rs 9.2 lakh per litre in the last 15 days. 

Let’s look at how much fuel prices will probably go up!

Petrol And Diesel Prices To Shoot Even Higher

Oil marketing companies (OMCs) have increased the prices of petrol and diesel along with the rising prices of crude oil. 

It’s necessary to increase the retail prices of petrol and diesel by Rs. 0.52 to 0.60 for every $1 per barrel rise in the price of crude oils for OMCs, as per experts. This is necessary to maintain normal marketing margins on the sale of auto fuels. 

As per reports, the price of Brent crude has increased by about $28.4 per barrel in November to $108.9 per barrel. Brent crude prices stood at $102 per barrel on February 24.

This further shows that fuel prices would be hiked by Rs 5.5-7.8 per litre each on petrol and diesel at the current price of Brent Crude. 

In November, price revisions were halted by OMCs for 137 days. 

There were reports that suggested that fuel rates may be increased after the elections in the UP end on March 7, as there has been a huge hike in global crude oil prices after the invasion of Ukraine by Russia.

Centre To Reduce Excise Duty

However, the Centre will probably reduce the impact of higher crude oil prices by reducing excise duty on petrol and diesel. In November, there had been a reduction of Rs. 5 in excise duty on petrol and a Rs. 10 per litre cut in excise duty. Despite this, the central taxes are higher by Rs. 8 per litre on petrol and by Rs. 6 per litre on diesel as compared to the prices before the pandemic. 

As of now, the central and state taxes make up for about 43 per cent of the retail price of petrol and about 37 per cent of the pump price of diesel in Delhi.

We had previously reported that The government may once again cut excise duty on petrol and diesel in order to check the probable spike in prices of commodities. This spike is expected to come in response to a sharp rise in crude oil prices due to the Russia-Ukraine war.

Crude oil prices have already breached $100 per barrel in the international market. The crude mix shipped by India called the Indian basket came close to $94 per barrel.