As state-run oil marketers gear up to begin daily revision in fuel prices, starting June 1 consumers may brace for a hike in auto fuel by up to Rs. 5 per litre for both petrol and diesel.
In accordance with the official sources, as per a meet held last week evaluating the current condition and way forward amid the pandemic, companies have been deciding on the roadmap for future plan.
Even if the lockdown continues beyond June, on the permission of the government the oil retailer can take it forward as without marginal gains the companies may run into huge losses on selling fuel below cost.
Considering the given situation as the lockdown is likely to continue with ease in movement, there could be market based rate for petrol and diesel.
As of now, the cost and sale price differential currently stands at Rs. 4-5 per liter and to cover it prices need to ramped up on a daily basis for some weeks, considering prices in the international markets are unlikely to rise given week demand.