new Delhi: With the assembly elections in five states of the country ending next week, the prices of petrol and diesel may start increasing. International crude oil prices have exceeded $100 per barrel. Due to this, the oil companies need to increase the price of petrol and diesel by Rs 9 per liter to achieve normal margin.
International crude oil prices touched $110 a barrel for the first time since 2014 on fears of disruption in oil supplies from Russia. According to the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum, the price of crude oil that India buys on March 1 exceeded $ 102 per barrel. This fuel price is the highest since August 2014.
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In early November last year, when petrol and diesel prices were reined in, the average crude oil price stood at $81.5 per barrel. Brokerage company J.P. Morgan said in a report, “The state assembly elections will be over by next week. It is anticipated that after this the fuel rates may increase on a daily basis.”
The seventh and final phase of polling in Uttar Pradesh will be held on March 7 and counting of votes for all the five states including Uttar Pradesh will be held on March 10. Public sector oil companies Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum are incurring a loss of Rs 5.7 per liter on petrol and diesel due to the rise in crude oil prices.
JP According to Morgan, oil marketing companies need to increase retail prices by Rs 9 per liter or 10 per cent to achieve normal marketing profits. Domestic fuel prices have remained unchanged for 118 consecutive days. (agency)