Auto Fuel Prices May Be Revised Higher Soon: Reports

Clearly after the VAT cut has been announced on petrol and diesel by the Maharashtra government and fuel price across the country have remained static for around 3 months now, it is likely that fuel rates may see a price hike.

This is being iterated as Oil marketing companies amid rupee depreciation are already claiming losses to the tune of Rs. 16-18 per litre for petrol, while for diesel it is between Rs. 23-25 per litre.

So, as per reports, OMCs have approached the centre and demanded the centre's permission to allow them to hike fuel rates. Nevertheless, reportedly, the government as of now is not giving in to their demand.

But in future course, it is highly likely that OMCs shall no longer be able to absorb the higher crude cost and with the rupee depreciating further their losses shall widen. So, probably, the centre will need to intervene with some measure that keeps their losses in check. And sooner or later we may expect, fuel prices to trend higher.