New Delhi: At a time when India is looking at ways to keep rising fuel prices in check, a further increase in the per barrel price of crude oil (the deciding factor of domestic oil prices) may bring more pain for consumers in the future.
Brent crude is likely to reach $100 per barrel in 2018, however, the price change will not come overnight, analysts told Russian news website Sputnik.
(Also Read: Petrol, diesel price on 23rd May 2018)
With the hike in crude oil prices countries that would gain the maximum will be 'United States, Canada, Mexico, Russia, Brazil, and Mideast oil-exporting nations” while those at the losing end would be countries like India China and other developing nations without oil reserves, analysts told Sputnik.
It may be recalled that oil prices in March were pushed up by Saudi statements that OPEC and Russian led production curbs that were introduced in 2017 will need to be extended into 2019 in order to tighten the market.
In April, analysts had told news Agency Reuters that geopolitical tension in the Middle East and an economic crisis in OPEC member Venezuela could also keep prices elevated for the rest of 2018.
Petrol and diesel have surged on the back of rallying international markets for crude oil, amid ongoing production cuts led by the Organization of the Petroleum Exporting Countries (OPEC).
More than a week after the state-owned oil firms ended a 19-day pre-Karnataka poll hiatus on revising fuel prices, petrol and diesel rates have touched record highs. Petrol on Tuesday was priced at Rs 77.17 per litre in Delhi and diesel costs Rs 68.34 a litre. In last ten days, petrol price has risen by Rs 2.54 a litre and diesel by Rs 2.41. US crude added 24 to $72.48 per barrel and Brent rose 17 cents to $79.33 on Monday (May 22).
The central government levies Rs 19.48 a litre of excise duty on petrol and Rs 15.33 per litre on diesel. State sales tax or VAT vary from state to state. In Delhi, VAT on petrol is Rs 15.84 and Rs 9.68 a litre on diesel. The prices in Delhi are the cheapest among all metros and most state capitals.
With Agency Inputs
