Looming SA fuel hike: Here's a look at global petrol prices

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The petrol and diesel prices are significantly increased in just a few days time since we last reported about the price hike across the country.

Similarly, diesel and kerosene will each cost Rs 92 per litre within 15-kilometre distance in Kathmandu Valley and Rs 91.50 per litre in Dang and Pokhara respectively.

This substantial fuel price hike at the end of May is said to be due to the rising global oil price. With that, petrol prices in Delhi are less than 1 per cent away from an all-time high of Rs 76.06 per litre, recorded in September 2013. According to a PTI report, oil marketing companies like IOC, BPCL and HPCL may hike pertol and diesel prices by almost Rs 4 a litre to maintain their marketing margin at previous levels of Rs 2.70 a litre.

According to Telangana Petroleum Dealers Association, during the last three days, fuel prices were increased by 32 paise on petrol and 72 paise on diesel.

Petrol prices hit 126.04p per litre this week while drivers will pay 128.79p per litre for diesel. The petrol price has surged past the 125p a litre barrier pushing up the cost of staycations and bank holiday journeys for millions of families
Looming SA fuel hike: Here's a look at global petrol prices

Of course the larger your fuel bill becomes, it means you have to make amends in your budget elsewhere as everything else gets affected when fuel costs rise, especially food prices.

"The increase in petrol and diesel prices is on account of price movement of the products in the worldwide market. The daily increase would have to be higher than normal to reach the true market reflective prices for these two products", said a source in an oil marketing company, asking not to be named.

Elevated oil price would give a big blow to inflation which could in turn compel the Reserve Bank of India (RBI) to opt for a rate hike. Allegations are flying high that the fuel prices were "frozen" with the Karnataka elections in mind. In the past, marketing margins have turned negative in the run-up to state elections in 2015 and 2017, though crude prices then had not risen much as compared to the current surge.

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