Fuel price likely to touch Rs.100 by 2019 January
According to sources officials in public sector, oil marketing companies said in the absence of any intervention to tame prices, petrol could cross Rs 100 per liter mark in most parts of the country by January 2019.
As per report the prediction is based on a simple calculation of roughly 40-50 paisa per liter increase in retail prices of petrol and diesel for every one dollar increase in international crude oil prices and to top it, if rupee depreciates further, every Re 1 fall in its exchange rate against the dollar will add another 65 paise to pump prices of auto fuels.
Meanwhile global crude oil prices have reached $ 81 a barrel mark, and there are no signs that prices will abate any soon.
Further
the price of Indian basket of crude is also not far behind hovering around $78 a barrel mark. Hence the crude prices are over 35% higher now than on August 1. Accordingly
Petrol is being retailed Rs 82.86 a litre
and diesel Rs 74.12 a litre
in Delhi on Wednesday, is already at record high levels.Presently the petrol prices
has
already reached Rs 90.22 a litre
in Mumbai and the city could be the first to taste Rs 100 a litre
price early next year. Moreover
Chennai is also not far behind and petrol is being retailed there at Rs 86.13 a litre
now and Maharashtra has the highest incidence of VAT
that probably explains while fuel prices there is highest in the country.