Now petrol and diesel price may pinch people’s pockets even more as crude oil in India has breached the psychological barrier of $50 a barrel for the first time since June. Indian oil refiners were made to pay $50.14 per barrel last Friday.
The oil price has recovered steadily since OPEC said last month that it would reduce production. Oil prices edged down early on Tuesday but held near one-year highs. Oil prices jumped as much as 3 percent on Monday, with Brent hitting a one-year high, after Russia said it was ready to join the Organization of the Petroleum Exporting Countries (OPEC) in curbing crude output.
For Indian, this would mean massive rise in fuel bills. According to analysts, if this trend continues after a day’s lag (Tuesday being a holiday on account of Dussehra), diesel and petrol prices are likely to increase.
For instance, the price of petrol was hiked 14 paise per litre and diesel by 10 paise a litre earlier this month. Petrol at the moment costs Rs 64.72 a litre in Delhi. Diesel costs Rs 52.61 per litre at present.