Petrol prices may go as high as ₹100 a litre unless duties are cut

Feb 10, 2021

By: Navdeep Yadav

​Brent crude price crossed the $60 per barrel mark on Monday after over a year of slowdown

The price has risen by over 50 percent since the end of October.

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​The spike in Brent crude oil prices came after...

… the oil-producing countries continued to limit production despite a sharp increase in demand.

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Business Insider examined the impact of rising Brent crude prices on fuel prices in India.

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Petrol and diesel prices rose for the second consecutive day on Wednesday by 30 paise each.

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​Urvisha Jagasheth, a research analyst at CARE Ratings, explained that...

Fuel prices are determined by crude oil and forex rates — which is why the recent spike in Brent led to increased fuel rate

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​How much can the Brent crude oil prices go up to?

Jagasheth said, “we believe crude oil prices are to range between $58-63/bbl in the near future.”

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​And, how much can the fuel prices go up to?

According to Jagasheth, the uptick in crude oil could lead to petrol prices ranging anywhere between ₹85 to ₹100.

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​Anuj Gupta, commodity and forex market analyst at Angel Broking had similar thoughts

“There is unlikely to be any respite to the common man as crude oil prices are only rising by the day.”

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Gupta said upwards trend may increase inflation in prices of various goods.

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How the government can help to lower the fuel prices?

The government can cut the excise duty rates for the consumers to keep fuel prices lower.

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​How much excise duty do you pay on per litre of fuel?

Currently, the central excise duty is ₹32.9 per litre on petrol and ₹31.8 per litre on diesel. This is separate for state taxes.

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