Global Crude Cost results in higher Petrol and Diesel Prices.
For the second consecutive day, Oil companies increase the petrol and diesel prices. The oil companies are projecting a ₹ 15 to ₹ 20 increase considering the average crude cost rising to $110-$120 per barrel. On Tuesday, 22nd March 2022 the cost of fuel increased for the first time after approximately 5 months. Further, the crude cost saw an increase of 3% on Wednesday, around $120 per barrel.
The consolidated increase of around ₹ 1.60per liter on the retail purchase was after 2nd November 2021. Moreover, the said price may vary based on the VAT levied by states. At present crude imports by India is approximately around 85%. The government of India had reduced the excise duty by ₹5 on petrol and ₹ 10 on diesel in November 2021.
City wise increase of Petrol & Diesel Prices
The fuel cost at Bangalore and Mumbai is highest at ₹ 113.52 and ₹ 111.67 for petrol. Whereas, Diesel cost at Hyderabad is highest at ₹ 96.37 and Mumbai at ₹ 95.85. Similarly, Delhi and Gujarat remain slightly better at ₹ 97.01 and ₹96.51 for petrol. Wherein the cost of Diesel at ₹ 88.27 and ₹ 90.57 respectively.
The automobile industry is as it is coping with the semiconductor shortage issue. Moreover, the increase in fuel cost may have an indirect impact on the purchase of vehicles. Further, a possible increase of 6-8% on the overall cost of EV from next month due to the rise in input and component. Additionally, the EV segment is already facing a hurdle due to limited infrastructure at the moment.
How will the increase in fuel cost & possible increase of EV cost impact the automotive industry will be a question to be answered.