Fuel To Get Pricier By 5 To 8 Percent In First Quarter Of 2017

Written By:

The petrol and diesel price in India saw a frequent drop in this year, as the benefits of excess oil supply were passed on to the consumers. But from next year the fuel prices are expected to be raised.

Fuel To Get Pricier By 5 To 8 Percent In First Quarter Of 2017

To avoid further drop in the fuel prices, the Organization of the Petroleum Exporting Countries (OPEC) has decided to size down the production of oil to raise the price of the fuel.

Fuel To Get Pricier By 5 To 8 Percent In First Quarter Of 2017

This move will result in a reduction of 1.2 million barrels of oil on a daily basis, which will commence from January 2017. The members of the organisation include some of the largest oil producers such as Saudi Arabia, UAE, Iran, Kuwait, Algeria, and Venezuela.

Fuel To Get Pricier By 5 To 8 Percent In First Quarter Of 2017

In 2008, OPEC had decided to cut down the production due to financial loses. The current quantity which is planned to reduced will see a total output of 32.5 million barrels of oil per day.

Fuel To Get Pricier By 5 To 8 Percent In First Quarter Of 2017

According to the report from CRISIL, the global crude oil price will hover around $50 (approximately Rs 3,374) per barrel and $55 (approximately Rs 3,711) per barrel for the first quarter of 2017.

Fuel To Get Pricier By 5 To 8 Percent In First Quarter Of 2017

Apart from that, the report reveals that the petrol price is expected to go up by five to eight percent and the diesel price will see a hike by six to eight percent.

Fuel To Get Pricier By 5 To 8 Percent In First Quarter Of 2017

Coming to the fuel prices in India, they are deregulated and linked to the market rates. So, the oil companies will revise the prices on a fortnightly basis depending on the dollar rate and global oil rates.

Fuel To Get Pricier By 5 To 8 Percent In First Quarter Of 2017

The oil companies will also account for their margin before finalising the end price to the consumers. If at all the prices are hiked, the petrol price may go up to Rs 71 per litre as compared to the current price of Rs 66 per litre in Delhi and the diesel price will stand at Rs 59 per litre against the current price of Rs 54 per litre.

Fuel To Get Pricier By 5 To 8 Percent In First Quarter Of 2017

Most Read: Kawasaki KX250 And KX100 Dirt Bikes India Launch Date Announced

Read more on: #auto news
Story first published: Tuesday, December 13, 2016, 16:08 [IST]
Please Wait while comments are loading...

Latest Photos