Just early this month, fuel prices had finally begun going down after seeing a meteoric rise in April 2021. However, over the past couple of days, motorists across the country have begun witnessing a continuous increase in fuel prices. India is a country that has seen a massive jump in auto sales in the past couple of years. Even as the Covid-19 pandemic raged on in 2020, people were still buying vehicles (new and used). Therefore, it is impossible to undermine the effect of fuel prices, and it will be foolish to not see the direct connection a hike in those prices can have on the industry as a whole.
On May 11, 2021, the nation yet again witnessed fuel prices being hiked by oil companies for the second consecutive day. In fact, the price of petrol in India’s financial capital of Mumbai hit Rs 98.12 per liter, while the price of diesel rocketed to Rs 89.48 per liter. Bengaluru saw the second-highest cost per liter in India, with one liter of petrol costing Rs 94.85 and that of diesel priced at Rs 87.31. Following close behind was Chennai, where the cost of petrol per liter was Rs 93.62, and that of diesel was Rs 87.25. Meanwhile, the price of petrol in the nation’s capital of Delhi was Rs 91.80 per liter, with the cost of diesel coming in at Rs 82.36.
The price of petrol in Kolkata on May 11 was Rs 91.92 per liter, while the cost of one liter of diesel was Rs 85.20. However, while these are some egregious prices, it is nothing compared to what certain places in India are facing. For example, the price of petrol in Anuppur (Madhya Pradesh) is an astonishing Rs 102.40 per liter, with diesel coming in at Rs 93.00 per liter. Then there is a place called Sri Ganganagar in Rajasthan. Here, the price of petrol touched a mind-boggling Rs 102.70 per liter, while the cost of one liter of diesel crossed Rs 95.00. These truly are some horrendous prices for what are considered common commodities in this day and age.
Fluctuating foreign exchange rates and the supply of crude oil from extraction locations are major factors here. That isn’t all, though. With the ongoing pandemic causing mass panic in stock markets and economies all over the globe, a drop in demand for petrol and diesel come together with inflation in several countries. Undeniably, this has a fantastic effect on the price of crude oil but even beyond that, on the local oil companies that will inevitably bump up the price. No matter how you look at it, at the end of the day, it is the average consumer that suffers the most. Electric vehicles sound pretty good right about now, don’t they?
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