Rising global crude oil prices could spoil the party for Indian consumers of petrol and diesel.
Crude oil prices are currently ruling above $55 per barrel mark after crashing below $45 last month. Following the de-regulation of petrol and diesel prices in India, auto fuel prices are being adjusted every fortnight in line with their movement in the international markets. So, if the ongoing uptrend in the prices of oil and petroleum products in the global markets is anything to go by, consumers in India should brace up for a hike in petrol and diesel prices anytime soon.
However, it remains to be seen whether the oil marketing firms - Indian Oil Corp (IOC), BPCL and HPCL - bite the bullet on prices.
"We will take a call after watching the global product prices along with the rupee-dollar equation," IOC CMD B Ashok told HT.
Due to an unprecedented fall in global oil rates, petrol prices in India have seen 10 cumulative cuts, with the fuel getting cheaper by Rs 17.11 per litre since August. Similarly, diesel prices came down by Rs 12.96 a litre by way of six cuts since its de-regulation in October. Petrol currently costs Rs 56.49 a litre and diesel Rs 46.01 a litre in Delhi.
The Indian crude oil basket, which has fallen from a high of $115 a barrel in June last year to the current $45, is now again headed northwards.
Citing a major shake-up in the oil markets, the International Energy Agency (IEA) has also predicted a recovery in global oil prices.
Stating this in its five-year forecast, the IEA said global oil prices will rise to $73 per barrel by 2020.