Analysts feel that this trend of rising fuel prices will keep continuing till domestic fuel rates are at par with international prices.
State oil firms on Friday announced a sheer hike in petrol prices, raising pump price by Rs 1.96 a litre in Delhi and Rs 2.05 a litre in Mumbai.
The new rates would come into effect from Saturday. The fuel now reached at Rs 76.06 a litre in Delhi and Rs 83.62 in Mumbai.
Fuel prices have increased nine times in last four months by the companies citing the reasons as devaluation of the Indian currency and mounting international crude oil prices.
Reportedly, the country’s biggest fuel retailer, Indian Oil Corp said that companies may consider a downward revision of the fuel rates in future because the rupee is strengthening and international crude oil rates are on decline after the Syrian crisis was precluded.
As per agency inputs, Indian Oil said in a statement that if the recent trend of stabilization and appreciation of rupee-dollar exchange rate continues and international petrol prices also not move adversely, the beneficial effect of the same will be passed on to the consumers in the next fortnight.
India’s three state-run fuel retailers – IOC, Bharat Petroleum Corp and Hindustan Petroleum Corp have the propensity to increase their prices together. The government deregulated petrol prices in June 2010.
In January this year, the Indian government allowed fuel retailers to lift the price of subsidised diesel in small amounts every month, which does not add on to the pressure on the common man.
However, even the hike of fuel prices in proportions have not given any respite to the public instead put added burden on their pockets. It is the most distressing situation that has affected the public at large.
The year 2013 has witnessed fuel price hike a several times, which has lead to extensive opposition across the country. Citizens are blaming the ruling Manmohan Singh led-UPA government for the current state. The price hike has not just left its impact on the common man; it has also affected the automobile industry at large as the demand for cars have declined. In addition, car makers have been forced to raise the prices of vehicles for financial feasibility.
The oil companies says their decision to raise fuel price is justified, claiming that the current rise is not enough as they are still incurring losses. Statistics of the last fiscal year have been released, which support the saying of the oil firms.
Analysts feel that this trend will keep continuing till domestic fuel rates are at par with international prices.
Meanwhile, the opposition parties state that the UPA government has no control over its economic policies and they are following wrong policies from last nine years. However, the government endorses the price rise as the need of the hour.
The government and the opposition are busy playing blame games, while the burden has been shifted on the common man.