What lies behind the hike in petrol and diesel prices
Petrol and diesel prices went up every day since 7 June. In Delhi, the price of petrol was hiked by ₹9.12 per litre between 7 June and 26 June, while that of diesel has gone up by ₹11.01 per litre. Other cities have seen a price rise as well. Why is this the case? Mint takes a look.
What’s the immediate reason for the hike?
On 28 April, the price of the Indian basket of crude oil had fallen to as low as $16.19 per barrel. The average price of crude oil in April stood at $19.9 per barrel. Since then, the price of oil has risen. It averaged at $30.60 per barrel in May. On 25 June, the price was at $40.66 per barrel. Basically, the price of crude oil has doubled in a period of around two months, as international demand for crude has picked up pace, with the easing of lockdown curbs. For a little over one month up to 6 June, petrol and diesel prices were not increased. They have been going up since then, reflecting the higher price of oil.
