Petrol prices cross Rs. 100 per litre mark once again in Delhi

Petrol and diesel prices are increasing continuously for the past 8 days. After the 7th hike i.e. Rs 80 paise per litre for petrol and Rs 70 paise per litre for diesel. The price of petrol has breached the Rs. 100 per litre mark whereas diesel now retails for Rs. 91.47 per litre. The prices were steady for the past four months but because of the Russia-Ukraine situation, the prices started increasing again.

Prices can increase further

Every petroleum company has increased the price of petrol and diesel. In India, the prices stayed consistent for longer because of the elections. This led to a total loss of Rs. 19,000 Crores for all oil companies. This information was revealed by Moody’s Investors Services.

Research agencies have said that the petrol prices need to increase more to break even. Kotak Institutional Equities said ” Oil Companies will need to raise diesel prices by ₹13.1-24.9 per litre and ₹10.6-22.3 a litre on gasoline (petrol) at an underlying crude price of ₹100-120 per barrel,”

Also read: 10 DC Design cars & how they look in the REAL world: Maruti Swift to Mahindra XUV500

CRISIL Research said, “the retail prices of fuel should increase by Rs. 9-12 per litre to fully pass-through of an average of $100 per barrel crude oil” If the price of crude oil increases to $110-120 then the fuel prices would need to increase by Rs. 15-20 per litre. However, the crude oil prices have decreased but oil companies of India have already suffered a lot of loss so they might not decrease the price of petrol and diesel.

Crude oil prices finally decrease

Internationally, the prices of crude oil finally decreased to $112 per barrel. This is a 4 percent drop. The prices came down after China imposed a lockdown in the city of Shanghai because of increasing coronavirus cases. China is one of the biggest consumers of crude oil. The situation was also improved because there were talks between Ukraine and Russia about peace.

India sends 40,000 tonnes of diesel to Sri Lanka

India accepted the request of Sri Lanka to send 40,000 tonnes of diesel. This will be done under a  $500-million line of credit. Sri Lanka is facing a severe shortage of diesel for the past few weeks. Their currency has also taken a big hit and the import costs have also increased significantly. Products like cooking gas, oil, milk-related products, pre-owned vehicles are selling for way more money than they used to.

As we know that Sri Lanka is facing an economic crisis right now. Due to this, the prices of petrol and diesel have skyrocketed in Sri Lanka. To keep the situation under control Sri Lanka’s Government had to appoint an army at fuel stations. As of now, the rate of petrol is 200 Sri Lankan rupees or Rs. 53.43 per litre whereas diesel is selling for 250 Sri Lankan rupees or Rs. 66.79 per litre. The 40,000 tonnes of diesel that is being sent to Sri Lanka is in addition to the seven monthly shipments of diesel, petrol and aviation fuel that is already being sent to Sri Lanka.

Also read: Upcoming 2022 Maruti Suzuki Vitara Brezza rendered