Petrol and diesel prices on June 26 continued to surge with record highs being hit once again. In Mumbai petrol was up 33 paise at Rs 104.22, while petrol in Bangalore gained 36 paise on June 26 to hit a new high of Rs 101.39 per litre. Petrol price in New Delhi was up 35 paise at 98.11 per litre.
Diesel prices too have rallied with Bangalore seeing gains of 38 paise to 93.99, while in New Delhi diesel was at 88.65, up 35 paise. Almost all of the cities are seeing a sharp increase in petrol and diesel prices without any respite.
Crude in the international prices continue to move higher, which pushes petrol and diesel prices in India higher, unless the government cuts excise rates.
Global economic recovery will push prices higher
Global economic recovery has ensured that crude remains at elevated levels. In fact, some analysts foresee the possibility of crude prices touching $80 per barrel, which is not good news for consumers. There have been demands to cut excise on petrol and diesel, but that remains only a demand.
According to a Reuters report, BofA Global Research raised its Brent crude price forecasts for this year and next, saying that tighter oil supply and demand balances in 2022 could push oil briefly to $100 per barrel.
"We believe that the robust global oil demand recovery will outpace supply growth over the next 18 months, further draining inventories and setting the stage for higher oil prices," the bank said in a note recently.