Petrol and Diesel prices will be going to hike by Rs 4 in the next few days. After the Karnataka election all oil corporations rises there prices on monday after 19 days. In a report of Kotak Institutional Equities it is mentioned that if petrol companies wants to return to the previous margin as it was before the Karnataka elections, they have to hike the prices of petrol and diesel about Rs 4.
With the inflation of petrol and diesel, more burden on the common man’s pocket is going to increase. In the coming days, the petrol price can go up to Rs 90 per litre. Actually, the prices of crude oil in the international market are continuously increasing. Further, there are chances of getting crude oil more expensive. On the other hand, the rupee is getting more weak. In the case, the oil companies will have less scope for holding petrol and diesel prices.
The petrol price in delhi is Rs 75.61 per litre from Rs 75.32. It is the highest
price in 5 years while diesel rates were increased to Rs 67.08 per litre from Rs 66.79, according to a price notification issued Indian Oil.
Petrol prices remain highest in Mumbai at Rs 83.45 per litre with the surge of 29 paise. Diesel price touched Rs 71.42 per litre in the financial capital.
If the petrol and diesel prices will hike like this then the transportation charge will also be increase and it will cause more inflation and after increasing the inflation RBI could increase its interest rate.
It is also mentioned in the Kotak Institutional report that in our calculation to get the Rs 2.7 litre gross marketing margin, oil companies will hike the price of diesel from Rs 3.55 to Rs 4 and petrol from Rs 4 to Rs 4.55 per litre. This calculation is done for maintain the rate of dollar.
Rupee-US Dollar exchange rate may also play an important role in either accelerating or decelerating the price revision.