In the past few months petrol and diesel prices have been steadily on a decline. On Saturday, 28th February, 2015 post the Union Budget announcement, it was declared that the fuel prices will be raised as well by midnight.
Oil companies have decided to increase the price of petrol and diesel by Rs 3.18 and Rs 3.09 respectively. That means in Delhi petrol will now cost Rs 60.49, whereas diesel will cost Rs. 49.71. The prices of fuel have been increase in India for a second time in the past few weeks.
The rise in fuel prices is due to international trends and currency exchange rate. Oil companies are also trying to keep the prices on par with international markets, so that customers can gain maximum benefit. The current hike in fuel prices, however, is sharp and was not expected by most experts.
Brent Crude has shot up by 18 percent, which is the sharpest increase since 2009. Currently the price for a barrel of crude oil is USD 62.58 or INR 3,873. There has been an increase of USD 2.53, as compared to previous prices. From last year onwards fuel prices have plummeted and now it seems like it is on a steady upward trend.
The petrol and diesel prices in India have been deregulated and Oil Companies revise prices every fortnight to keep them on par with international prices. We believe fuel prices will be on a steady climb and we had a short relief from the exuberant prices we shelled out for previously.