On weaker dollar which marked a low of three-year level and also crude oil which is continuously soaring to new highs due to supply crunch is not going to stop the surge in petroleum products price anytime soon which has breached the levels of Rs. 80 in the financial capital of India.
The surge in crude oil price is mainly on account of deficit in its inventory given the cutback on its production by some of the major OPEC.
The hike is obvious given the prices of petroleum products including diesel and petrol in India are determined in line with the price of crude oil internationally.
In a span of just 3 months, the price has increased by Rs. 3 per litre and this is in line with international crude oil price which is now at a high of $68/barrel. This is a hike of $15 in price of crude oil per barrel in a matter of 3 months time .Also reports of petroleum products being included in the GST net are also under discussion.
The earlier cutback in excise duty on both petrol and diesel has all reversed its gains for the consumer due to the continuous surge in brent crude oil.