Petrol and diesel prices will have to be increased by Rs 15 per litre for fuel retailers to break even. Oil companies plan to reduce accumulated losses by keeping the rates steady. International prices have touched a 13-year-high of US$140 per barrel with brent crude, at one point, at over US$139 per barrel.
The basket of crude oil India buys rose to US$ 117.39 per barrel on March 3, the highest since 2012, according to the oil ministry. The rupee tumbled to a lifetime low of 76.96 against the US dollar – the previous low was 76.90 in April 2020.
Fuel consumption in 2022-23 is estimated to rise to 214.5 million tonnes from 203.2 million tonnes (expected). An increase in fuel prices after the elections has been feared by many. It is unclear if oil cos will be happy reducing prices with an eye on increased sales volumes.
The conflict in Ukraine has affected prices of several essential goods in the region and around the world. In India, for example, people have been rushing to stock up on cooking oil. Petrol, diesel and LPG (used for cooking) prices skyrocketed last year, earning the government the wrath of the common man.
Complete News Source : HINDUSTAN TIMES
