Why is your petrol, diesel bill rising despite cheaper international crude?

Key Highlights: 

• Petrol prices increases between Rs 7 per litre to Rs 10 per litre
• Diesel prices surged in range of Rs 4 per litre to Rs 6 per litre
• Crude Oil prices in Indian Basket has been hovering near $ 50 per barrel

Earlier this year, India gave up on petrol, diesel subsidy and linked prices to the international markets in hope that consumers will benefit as crude oil prices are trading at a third of their lifetime highs. 

Three months later, petrol and diesel prices in many cities in India have inched up to as close as Rs 80 to a litre. 

Dharmendra Pradhan, Minister of Petroleum of Natural Gas on June 16, tweeted, “After the complete transformation of the LPG sector, dynamic fuel pricing is the first major reform of recent times in Fuel Retailing Sector.”

Pradhan added, “With this historic step towards transparency and customer interest, the Indian Oil & Gas industry has joined the elite league of countries like USA and Australia wherein fuel prices are revised on a daily basis.”

But what was supposed to be an helping hand for Indian citizen has now turned out to be a nightmare because petrol and diesel prices have now reached a three-year high. 

Petrol prices on September 14, 2017, stood at Rs 70.39 per litre in New Delhi, Rs 73.13 per litre in Kolkata, Rs 79.50 per litre in Mumbai and Rs 72.97 per litre in Chennai – levels last recorded in the year 2014. 

Spike in petrol, diesel price fail to arrest car, two-wheeler sales