NEW DELHI: As crude oil rates spiked by 12% in the last seven days, petrol and diesel prices are inching up once again. After remaining stagnant for the past three days, the prices of petrol and diesel were increased by 38 paise and 29 paise, respectively, on Thursday. A litre of petrol costs Rs 68.88 in Delhi, Rs 74.53 in Mumbai, Rs 71.14 in Bangalore, Rs 71.47 in Chennai and Rs 71.01 in Kolkata.
Diesel, on the other hand, costs Rs 62.53 in Delhi, Rs 65.43 in Mumbai, Rs 64.58 in Bangalore, Rs 66.01 in Chennai and Rs 64.30 in Kolkata. Petrol and diesel prices, which had peaked on October 4 due to a rising global crude prices, had been on the decline since then.
During the last three months, the price of petrol has fallen by about 16% in Delhi while benchmark Brent crude oil has fallen by about 30%. India’s fuel price is linked directly to crude oil rate because about 80% of our requirements are imported.
In the international market, both oil price benchmarks had jumped by around 5% on Wednesday as financial markets around the world surged on the hopes that US and China may soon be able to end their trade disputes, soothing fears of an all-out trade war between the two biggest economies and its possible impact on global growth.
However, on Thursday oil lost some of the gains as the market fell by 1% on swelling US supply.
US West Texas Intermediate (WTI) crude oil futures on Thursday were down 1.2% at $51.75 per barrel while international Brent crude futures were down 1%, or 63 cents, at $60.81 per barrel.
Morgan Stanley has cut its 2019 oil price forecasts by more than 10% on Wednesday, pointing to “weakening economic growth expectations” and rising oil supply from outside OPEC as reasons for their lower price forecast.
Morgan Stanley now expects Brent to average $61 a barrel this year, down from a previous estimate of $69 a barrel, and US crude to average $54 per barrel, against a prior forecast of $60.