Rise in petrol and diesel price expected after daily price revision restarts

Rise in petrol and diesel price

Oil marketing companies revise petrol and diesel prices every morning, which was on the hold because of the lockdown. Now, after the lockdown, there will be a rise in petrol and diesel prices.

Even after the sudden decrease in the oil price, there is no rise in petrol and diesel price because of the revised VAT since March 16, which was well before the lockdown. As crude-oil prices fall and reduction in domestic demand, oil marketing companies held revising the oil rates at 6 am every day.

But, when the government eases the lockdown, demand for petrol and diesel rises gradually for both transportation and industries. So, the state-run oil marketing companies resume the revision process later this month.

According to the report by Indo-Asian News Service (IANS), the revision of fuel prices on daily prices may start again as soon as the relaxations of lockdown increases. But there were no considerable decisions taken by the oil marketing companies till now.

Expected Rise in petrol and diesel price

Rise in petrol and diesel price

When the revision starts, the petrol and diesel price will rise again daily as the global market also shows a gain of over 50% comparing to the last month’s price. Crude oil prices have fallen by around 50-60% since the beginning of the year.

As an excellent sign, the report says that even under daily price revision it does not allow the petrol and diesel prices to increase beyond a slab rate. So, this would clarify that petroleum products may rise from 30 to 50 paise per day until they obliterate the gap between cost and sales.

The increase in oil prices also depends on the oil rate and the status of the global oil market at the time of revision of prices.

As of now, in Delhi, the retailing petrol price is INR 71.26 a litre and Diesel price is INR 69.39 a litre. From March 16 to May 4, they maintained the price as INR 69.59 for petrol and INR 62.28 for diesel. This price change has been implemented by increasing the VAT to meet the Covid-19 expenses.

But the rise in petrol and diesel prices will not be a burden because of the price slab.

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