Costly oil may turn petrol, diesel dearer
NEW DELHI: With global oil prices on the rise, domestic petrol and diesel are likely to turn dearer for the Indian consumer.
Global oil prices hit their peak for 2015 on Wednesday as US crude inventories declined for the first time in the year. US crude rallied to a year’s high of $62.58 to a barrel on Wednesday, before settling down at $60.93, while brent crude peaked at $69.63 and closed at $67.77.
Brent crude was down 97 cents a barrel at $66.80 on Thursday.
The rise in the international crude price pushed up the price of the Indian crude basket to $66.54 per barrel on Wednesday, up 2% over $65.03 on Tuesday.
On April 30, Indian oil marketing companies raised petrol and diesel prices by `3.96 per litre and `2.37 per litre, respectively.
Global oil prices have more than halved between June 2014 and January 2015 after the Organisation of the Petroleum Exporting Countries refused to cut output.
But since January’s lows of $46 per barrel, prices have risen to $69 on Wednesday, on fears of a fall in US output, and on signs of a faster-than-expected demand rise across the world.
More than just burning a bigger hole in the consumer’s pockets, high crude prices would also mean a bigger dent on the country’s exchequer as it would see an increase in the subsidy outgo.