Petrol-diesel prices may increase by Rs 12 a liter after elections

After the assembly elections in other states including Uttar Pradesh, the price of petrol and diesel may increase by Rs 12 per liter. Petrol and diesel prices have been stable for the last four months. International crude oil prices rose above USD 120 a barrel for the first time in nine years on Thursday and eased slightly to USD 111 on Friday, but the gap between cost and retail rates widened.

According to information from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry, crude oil purchases in India increased to $117.39 a barrel on March 3, the highest since 2012. This is compared to the Indian basket of crude oil's average of $81.5 per barrel at the time of freezing petrol and diesel prices in early November last year.

The auto fuel net marketing margin stands at minus Rs 4.92 per liter as on March 3, 2022 and Rs 1.61 in Q4 FY22, said ICICI Securities. However, the net margin on the new international auto fuel prices is likely to be minus Rs 10.1 per liter on March 16 and minus Rs 12.6 per liter on April 1.