Are the markets pricing in fuel-led inflation?
After a hike of Rs 25 per litre in diesel prices for bulk buyers over the weekend, the government raised petrol and diesel prices by 80 paise a litre each.
Domestic cooking gas, or LPG prices were increased by Rs 50 per cylinder, ending over four-and-half month election-related hiatus in rate revision amid rising crude oil prices.
The government had kept the prices of auto fuels unchanged since November 2021 despite the Russia’s war with Ukraine that pushed crude oil prices to a 14-year high of over 140 dollars a barrel. Retail prices of petrol and diesel had been frozen since October 2021 when crude oil prices were hovering around 80 dollars a barrel.
