How fuel prices have surged in India in four days

Fuel prices have been jumping north since oil PSUs ended an 82-day hiatus in rate revision from Sunday (June 7).Global brent crude oil rates are hover
File photo. (REUTERS)
File photo.

Petrol and diesel prices had remained constant through weeks of national lockdown to check the spread of coronavirus. On June 7 (Sunday) though, oil PSUs ended an 82-day hiatus and once again began revising prices on a daily basis. Since then, these prices have been shooting up with the revision on Wednesday, price of a litre of petrol in Delhi stood at 73.40 while diesel rate stood at 71.62 for a litre. (Full report here)

Rates have been increased across the country and news agency PTI reports that they vary from state to state depending on the incidence of local sales tax or VAT.

A number of factors continue to have an impact on the prices of petrol and diesel in the country. Several states have hiked VAT and/or local taxes on the two fuels in a bid to recover loses incurred during the lockdown period. The other major factor that is contributing to the current upward trend is that brent crude oil rates in the global market have nearly doubled in a month, up from historic lows in April. From somewhere around $21 per barrel, it is currently trading at $40 per barrel.

Also check these Vehicles

Find more Cars
Benling India Believe (HT Auto photo)
BatteryCapacity Icon3.2 kWh Range Icon120 km
₹ 1.26 Lakhs
Benling India Benling Kriti (HT Auto photo)
Range Icon60 km/charge
₹ 56,940 - 66,121
View Offers
Benling India Benling Aura (HT Auto photo)
Range Icon120 Km/charge
Benling India Benling Falcon (HT Auto photo)
Range Icon75 km/charge
₹ 62,200 - 71,248
View Offers
Hcd India Nps Cargo (HT Auto photo)
Range Icon70 km/charge
₹ 54,500 - 58,500
View Offers
Kinetic Green Flex (HT Auto photo)
BatteryCapacity Icon3 kWh Range Icon120 km
₹ 1.10 Lakhs

India fulfills nearly 80% of its crude oil requirements by importing it. As such, how INR fares against the US dollar also has an impact on fuel prices in the country.

As such, the last four days have witnessed petrol prices going up by 2.14 per litre and diesel by 2.23.

Rising fuel prices may have the potential of hurting demand for newer vehicles at a time when the Indian automotive industry is struggling to revive itself from the effects of Covid-19-related situations. While several analysts have predicted some momentum for passenger vehicle segment considering personal mobility may be preferred in Covid-19 times, rising fuel costs may figure highly in calculations made to determine whether to make a vehicle purchase or defer it.

First Published Date: 10 Jun 2020, 10:07 AM IST

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.