Business Desk, Etv Bharat: With Indian refineries bringing down their run capacities from around 93 per cent to 75 per cent, along with the upward trend of international crude oil price have triggered the price rise in the country after a 48-day halt.
For instance, petrol price was up by 65 paisa per litre in the last six days. Same is the trend in other parts of the country.
With the reduction in run capacity, there is less supply of petrol in the market and hence the hike in petrol price.
“Refineries in India reduced their run capacities from around 93 per cent to 75 per cent due to which there is a fall in supply. This has prompted prices to rise. The refineries have reduced capacities due to falling domestic fuel demand,” said Dr. Hiranmoy Roy, Associate Professor & Head, Department of Economics and International Business, School of Business, UPES.
He further said even if excise duty does not rise, petrol price may rise due to the rise in international rates.
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It may be recalled that the Brent Crude slipped to 13.78 dollars per barrel in the month of April (22nd April) which now has reached over 45 dollars per barrel.
State oil companies including IOCL, HPCL, Oil India etc are supposed to daily revise petrol and diesel prices in line with international rates, Roy noted.
Halt in Diesel prices
Though the petrol price has been climbing, there are no changes in the diesel prices lately.
This is because the quantum of excise duty is higher on petrol than diesel. So, the impact is lesser on diesel.
Also, diesel is being used by several income groups of the population including farmers for running pump sets.
Keeping this in mind as well, the government wants to stabilise the diesel prices in the country, said Roy.
