Fuel prices have continued to rise. As a result of the increase in raw material costs, oil companies raised the price of gasoline and diesel by 80 cents per liter on Saturday, marking the fourth increase in five days. The most recent price rise in Delhi has resulted in a liter of petrol costing Rs 99.11 per liter and a liter of diesel costing Rs 90.42 per liter after the most recent price increase. Read the article to know about Petrol Diesel Price Hikes Again.
Petrol Diesel Price Hikes Again
India’s crude oil basket topped USD 102 per barrel for the first time since August 2014, according to a report released by the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry.
According to the brokerage, for oil marketing businesses to return to normalized marketing margins, retail prices must be raised by nine cents a liter, or ten percent. Petrol Diesel Price Hikes Again to the upmost point.
“We anticipate a mix of minor excise tax reductions (of 1-3 cents per liter) and retail price increases (of 5-8 cents per liter) to reflect the USD 100 per barrel oil pass-through,” the report added.
Petrol Price Research
The price of crude oil on the international markets and the exchange rate between the rupee and the dollar determine the gasoline prices of state-run refiners such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum each day. Any adjustments in the price of gasoline and diesel take effect at 6 a.m. local time every day beginning at that time.
India is 85 percent reliant on imports to satisfy its oil requirements, and the costs of gasoline and diesel in the country are tied to worldwide benchmark prices.
Globally, oil prices fell today as Ukraine and Russia prepared to hold peace negotiations and concerns about a decline in gasoline consumption in China after the closure of the financial capital of Shanghai to combat the Covid-19 virus outbreak. From their previous close, Brent oil futures were trading at $111.30 a barrel, down $1.18, or 1.1 percent. West Texas Intermediate (WTI) oil futures in the United States were down $1.09, or 1%, to $104.87 a barrel. On Monday, both benchmark futures lost almost 7% of their value.
Petrol Diesel Price Hikes Again Oil Refiners Earnings
Following a record-breaking 137 days without a revision to gasoline and diesel prices, even though crude oil (the raw material used in fuel production) has risen to USD 117 per barrel. Up from USD 82 per barrel in early November, oil companies are now passing on the necessary increase to consumers in stages.
It is noted in a report released on Thursday by Moody’s Investors Services that BPCL and IOC, two state-owned fuel retailers, are doing well. HPCL lost around USD 2.25 billion (Rs 19,000 crore) in revenue terms by holding petrol and diesel prices steady during the election campaign.
As per Kotak Institutional Equities, if crude prices reached USD 100-120 per barrel, petrol (petrol) prices would have to increase by Rs 10.6-22.3 per liter, and diesel prices would rise by Rs 13.1-24.9 per liter.
Frequently Asked Questions
Why has the price of petrol suddenly risen?
Fuel prices were frozen early by state-owned fuel retailers IOC, BPCL, and HPCL due to electioneering for a new government in Uttar Pradesh, Punjab, and three other states. Diesel costs 86.67 rupees per liter in Delhi, and petrol costs 95.41 rupees.
When did diesel fuel reach its highest price?
Fuel prices had reached their highest level since July 2008, when they reached $4.84. For example, a gallon of diesel now costs $4.75, more than twice what it did in October 2020. The russo-Ukrainian conflict has been one of the significant factors contributing to the rising costs.
India’s petrol prices are rising for what reason?
There may be a hike in petrol and diesel prices this week despite international oil prices surging to a 13-year high of $140 per barrel, as oil companies seek to pare losses accumulated from keeping rates steady for over four months in the run-up to assembly elections in five states, including Uttar Pradesh.
In what way does diesel No 2 differ from diesel No 1?
There should be no more than 15 parts per million of sulfur in No. 2 diesel fuel. No. 2 Distillate is primarily used in engines for motor vehicles’ transportation on highways.
How much does petrol cost in which country?
Contrary to popular belief, Venezuela has the world’s lowest petrol price. One liter of petrol in Venezuela is priced at $0.025 or Rs 1.88. Syria comes in second with a price of $0.060 per liter of petrol, equivalent to Rs 4.50.
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