Fuel prices are expected to crawl upwards once again with all major fuel providers announcing the fact that prices will be revised every morning, just like we saw a few months ago. Petrol and diesel prices have already increased substantially with diesel reaching record highs at Rs 69.46 a litre in Delhi and Rs 73.74 a litre in Mumbai. Petrol prices are also up once again at Rs 85.33 a litre in Mumbai and Rs 77.91 a litre in Delhi. The fuel companies have blamed the weakening of the rupee as compared to the dollar for the hike in prices.
And it's the same story in other cities across the country too. Petrol prices in Kolkata are at Rs 80.84 a litre while the price in Chennai is at Rs 80.94 per litre. Similarly, diesel prices in Kolkata are at Rs 72.31 a litre while the price in Chennai is at Rs 73.38 per litre. While earlier, petrol and diesel prices were increased or decreased depending on market conditions on the 1st and 16th of every month, the fuel companies will be revising fuel prices every day in small proportions every day at 6 AM.
Other factors that are contributing to the hike in fuel prices are geo politics factors like the United States and China embroiled in a trade war, which incidentally has far greater reaching implications than the two countries. The United States and its sanctions against Iran is also a factor as the country is a large supplier of crude oil and exports close to 2.5 million barrels per day! Once the sanctions come into today, expect Iran to drop its production to close to 1.5 million barrels a day.
