New Delhi: Petrol and diesel prices in Hyderabad and other metros had witnessed a sharp drop in the month of November after the central government decided to cut excise duty on fuel.
The prices of petrol and diesel which were Rs.114.49 and Rs.107.40 per liter respectively in Hyderabad on November 3 have dropped to Rs. 108.2 and Rs. 94.62 on November 4. Other metros too witnessed a sharp drop in fuel prices.
Since November 4, no change in petrol and diesel prices has been witnessed so far. However, the same is not true for the prices in the international market.
In the international market, the oil price is near $100 per barrel. Currently, the cost of global benchmark Brent crude was $93.10 per barrel. On November 4, it was $80.54 per barrel. It increased by 15.59 percent.
Why crude oil price increasing in international market?
As predicted by Goldman Sachs last month, the oil price is likely to reach $100 per barrel this year. There are various reasons for the spike in the price.
Currently, the spike in oil price is due to the Russia-Ukraine crisis. As Russia is one of the world’s top producers of crude oil and gold, any western sanctions against it will stiffen the global supply.
Apart from it, the OPEC+ countries, oil-producing nations, have delivered less number of barrels when compared to the demand because of outrages and geopolitical tensions.
Why petrol, diesel prices in Hyderabad, other metros remain static?
Assembly elections in various states including Uttar Pradesh can be one of the major reasons for the decision behind maintaining the petrol and diesel prices static in Hyderabad and other metro cities in India.
| Cities | Petrol price per liter | Diesel price per liter |
| Hyderabad | Rs. 108.20 | Rs. 94.62 |
| Delhi | Rs. 95.41 | Rs. 86.67 |
| Mumbai | Rs. 109.98 | Rs. 94.14 |
| Kolkata | Rs. 104.67 | Rs. 89.79 |
| Chennai | Rs. 101.40 | Rs. 91.43 |
It is most likely that the prices of fuel will increase after the completion of the polls in the states.
As the oil companies have not increased the prices of petrol and diesel despite rise in price per barrel, they might increase it significantly to cover up the losses incurred so far.
