Petrol and Diesel Prices

Petrol price went up by 64 paisa while the price of diesel fell by around Rs. 1.35 a litre. In Delhi, the prices of petrol and diesel, with effect from June 16, are expected to remain at Rs. 66.93 and Rs. 50.93 respectively. Price of petrol has been raised by the fuel retailers following the two consecutive increases since May. On the other hand, diesel prices have shown a downward trend.

The hike in petrol and cut in diesel prices can be contributed to fluctuating global oil prices and foreign exchange rates. The increase in price of petrol and downward movement in the diesel price internationally, along with the depreciation of Indian rupee has accounted for such a change. Also, the prices may vary within the country at different places. The consecutive hikes in petrol price have washed away more than one-third gains made by the rational consumers due to fall in global prices in August. In case of diesel, the fall in price has restored the loss suffered in May.

The prices are expected to be unstable in the future too. The fluctuations in the prices in international oil market and Indian Rupee-US Dollar exchange rate would continue to be the determining factor of the prices of petrol and diesel in the local market. The local fuel retailers would closely watch out for such amendments and in the future too, the local prices would reflect any such change. Consumers are not expected to be at relief due to high instability in the market and volatile prices.

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