Fuel prices need to rise ₹8 to ₹10 to compensate for the recent increase in crude oil, the sources said.
According to NDTV sources, fuel prices will likely have to increase by 8 to 10 to compensate for the significant increase in crude oil since the most recent revision more than three months ago, but it depends on a number of factors. element.
Across metro cities, fuel prices were flat on Thursday, March 3, 2022. It was the longest period of time when rates were flat since the daily price revision began. beginning in June 2017.
But energy prices have been bullish during this time on supply concerns from the Russia-Ukraine conflict, with crude prices hovering around $120 on Thursday before plunging back to around $114.
Crude oil prices have risen significantly, about 25% in that period.
The necessary price adjustment to the retail prices of gasoline and diesel to compensate for the increase in crude oil prices during this period is expected to be around 8 to 10 yen per liter, according to the source. NDTV news.
If the government approves the release of crude from its stockpile, the required retail fuel price increase will be reduced. The other option, of course, is to reduce excise and value added taxes. So the exact increase needed in the retail price of gasoline and diesel will depend on many variables, they added.
The central government cut the excise tax on November 4, 2021, to ease prices that have hit all-time highs. The government has cut taxes on gasoline by 5 yen/liter and diesel by 10 yen/liter, resulting in a significant drop in fuel prices.
At the end of December 2021, the Delhi government reduced the value added tax on petrol from 30% to 19.40%. With this, the price of gasoline in the national capital fell by 8.56 yen per liter.
India’s oil companies are expected to soon accept calls to raise gasoline and diesel prices due to the recent rise in crude oil prices.
