Fuel prices rising at fastest rate for 18 years


Diesel price in Delhi was Rs 68.80 per liter and Rs 73.25 in Mumbai.

The reduction in petrol and diesel prices by a meagre 11 and 8 paise per liter comes as a rude shock to many who have been expecting a respite.

After the one paisa reduction in fuel prices on May 30, which caused much criticism from the Opposition, prices have since fallen continuously.

Before the seven consecutive price cuts, petrol and diesel rates were increased continuously for 16 days starting May 14. U.S. crude ended $1.06 lower at $64.75 a barrel, after earlier touching $64.57 - its lowest since April 10.

The recent price cuts have come as a huge relief to the public that was exposed to exorbitant rates when prices of global crude oil were increasing continuously. In real terms, average prices in the March quarter 2018 were the highest since the September quarter 2015 (138.5 cpl).

The good news is, CommSec thinks petrol prices may have peaked, after weekly price data from the Australian Institute of Petroleum showed a 0.1 cent fall in national average prices last week, to 153.3 cents per litre for unleaded petrol.

These factors include Middle East tensions, the potential for renewed USA sanctions against Iran and concerns over Venezuelan supply.

The average brent crude oil price increased from 70.88USD to 77.00USD per barrel during the period under review. If crude prices go up as predicted then it would hit India really hard.

Since OPEC countries orchestrated an oil supply cut in 2016, the cost of a litre of unleaded petrol has risen by more than a third - from $1.14 to $1.53 - adding $27 to the price of filling a family vehicle. The outcome of the meeting of the oil producing countries later this month will determine the future prices of oil.