Fuelling your car or two-wheeler is likely to leave your wallet lighter than before, with oil companies hiking the price of petrol and diesel across the country. The latest hike in fuel prices means that petrol rates are at a four-year high, with a litre of it costing Rs.73.83 in Delhi.
The hike can be attributed to an increase in global oil prices, which it itself is a result of increased demand for oil.
While non-branded petrol rates have been increased by 10-11 paise/litre in metros, the cost of diesel has gone up by 11-12 paise/litre.
Oil companies which previously used to revise fuel rates every fortnight have now adopted a system of daily price revision, reflecting accurate market conditions.
|City||Petrol price on April 1, 2018 (Rs)||Petrol price on April 2, 2018 (Rs)||Diesel price on April 1, 2018 (Rs)||Diesel price on April 2, 2018 (Rs)|
Fuel rates have been on a rise over the last few years, with the finance ministry failing to implement the reduction in excise duty on diesel and petrol which the oil ministry had sought.
While the centre had reduced the excise duty on fuel by Rs.2/litre in 2017, global changes have resulted in negating this cut in prices.
Oil companies on Sunday had reduced prices on jet fuel, with Indian Oil pricing one kilo litre of jet fuel at Rs.61,450, down by Rs.231 compared to prices in March.
With India relying heavily on import of oil, any increase in global rates could have a huge impact on the economy. Higher prices could result in inflation, in addition to leaving little room for the RBI to cut lending rates, which in turn could result in reduced money for the government.