After two weeks of constant price surge in Petrol and Diesel rates in India it finally took a break on 30th May 2018 as the price of petrol went down from Rs. 78.43 on 29th May 2018, to Rs. 77.83 on 30th May 2018. The 60 paise price cut was somewhat a breath of relief for the public after the dramatic rise of pricing for almost 15 days but it turned out to be a fluke, a slap on the faces of the Indian public as the price was corrected from 60 paise to 1 paise on the official IOC website.
Earlier the price cut for diesel and petrol of under 60 paise had created confusion among the public but it turned out to be an error on the Indian Oil Corporation’s (IOC) website which had led to the incorrect prices of petrol and diesel getting reported. Within hours of the price cut the IOC updated their website and the new price rate show a price decline of 1 paise for both petrol and diesel.
Over the period of more than two weeks, the rise of petrol prices was around Rs 4 across the country while diesel rates rose up around Rs 3.3. Earlier the price of petrol and diesel was recorded on a 4 years high. On 29th May 2018 the price of petrol was Rs. 78.43 in Delhi while the price of diesel was Rs. 69.30. Similarly, in Mumbai it was Rs. 86.23 for petrol, the highest in the country and Rs. 73.78 for diesel, in Kolkata it was Rs. 82. 05 for petrol and Rs. 71.85 for diesel and in Chennai it was Rs. 81.42 for petrol and Rs. 73.17 for diesel. If we consider the average of last 10 days of the price rise then petrol averaged around Rs. 77.494 in Delhi while diesel averaged around Rs. 61.616.
India fills its requirements of almost 80 per cent crude oil by importing it from the international markets. So even the smallest increase in the crude oil prices in global market leads to an increase in the price of petrol, diesel and LPG in the Indian subcontinent. Higher fuel prices are pushing up inflation rates at a time when prices of food items such as pulses have come down.
News is that Petrol and diesel prices may see a decline soon after its dramatic rise as international fuel rates retreat and Rupee strengthens in the international markets. Crude oil went below $75 a barrel on Monday 28th May 2018 after touching $80 per barrel last week. Prices of petrol and diesel follow the direction set by the crude oil, the costlier the crude oil per barrel in the international markets the more costly will be the price of petrol and diesel. But the decline of crude oil rates are already witnessing a decline in the international market and soon the Indian public will be relieved of the pocket burning prices of the petrol and diesel.