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Another Price Hike Looks Certain

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Pradeep Puri BUSINESS STANDARD
Last Updated : Feb 26 2013 | 1:13 AM IST

The domestic consumer of petrol and diesel will be subjected to another hike in the prices of these two auto fuels by the weekend in view of the continuing increase in the international prices of crude oil owing to war fears in West Asia.

In the absence of the domestic prices moving quite in tandem with international prices, it is difficult to assess the real quantum of price-increase, but it will be safe to assume that it will be close to 40 paise a litre both for petrol and diesel.

This assessment is based on the fact that every $1 a barrel increase in the international prices of crude should result in a 40 paise a litre rise in the domestic prices of diesel and a 50 paise a litre hike in petrol prices. In the past fortnight, the international prices of crude oil have moved up by around $1 a barrel.

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The prices of international benchmark Brent crude, which were ruling around $ 31.35 a barrel on February 5, moved up to $ 32.32 a barrel on February 7 before marginally softening to $ 32.02 a barrel on February 10.

Kerosene (Singapore), which was quoted around $ 36.10 a barrel on February 5, touched $ 43.48 a barrel on February 10, and moved down to $ 40.40 a barrel the next day.

High speed diesel (Singapore), which was ruling at $ 35.60 a barrel on February 5, moved up to touch $ 41.18 a barrel on February 10, and softened to $ 39.50 a barrel the following day.

Naphtha (Singapore), which was quoted at around $ 34.63 a barrel on February 5, touched $ 37.93 a barrel on February 10, and hiked further to $ 37.98 a barrel the next day.

Motor spirit (FoB Singapore), ruled around $ 36.40 a barrel on February 5, $ 39.48 a barrel on February 10 and $ 39.65 a barrel on February 11.

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First Published: Feb 13 2003 | 12:00 AM IST

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