Brace for a steep hike in petrol and diesel prices in coming weeks after the global crude oil prices ruled a three-year high of $80 per barrel. Experts have even suggested an 8%-10% rise in retail prices of transports fuels.
Petrol prices are currently ruling their highest in Mumbai at over Rs 107 per litre. It is over Rs 104 a litre in Bengaluru and more than Rs 101 per litre in Delhi.
Also read: Petrol, diesel prices up; more hikes likely
“As demand is returning for energy products while supply concern persists, we see Brent crude, which is trading above $80 per barrel, to witness levels like $85-86. Also, support seen after Goldman Sachs said the Crude market’s deficit was larger than expected, and raised its year-end Brent forecast by $10 to $90 a barrel. Together with this, a weakness in rupee will lend 8-10% gain in petrol and diesel prices,” Ajay Kumar, director, Kedia Commodities, told DH.
“Rising crude oil prices will eventually seep into retail fuel prices, adding to inflationary pressure,” said Aditi Nayar, Chief Economist at ICRA.
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