Why fuel prices are high despite a decline in crude prices?
Higher gasoline cracks and an increase in fuel duties have resulted in petrol prices remaining high despite a sharp fall in crude prices beginning July.
The price of Brent crude has fallen 10.57% since 1 July, while petrol price in Mumbai rose 2.45% in the same period, according to Bloomberg data. In August alone, crude prices fell 8.68%, while petrol prices declined a mere 0.95%.
The primary reason is the improvement in gasoline cracks from their lowest level of $2 per barrel in January to $11 in August, according to Yogesh Patil, senior research analyst at Reliance Securities.
