Up to Rs8.50 hike in fuel prices likely

While the impact of the Middle East escalation is yet to materialise, the higher international market is estimated to push up the prices of petrol and high-speed diesel by about Rs2.50 and Rs8.50 per litre, respectively on Monday (April 15) for the next fortnight, despite a decline in the import premium and a slightly improved exchange rate. Informed sources said the prices of petrol and HSD had increased in the international market by about $4 and $4.50 per barrel, respectively, during the last fortnight, before the latest escalation. Depending on final calculation, the price of petrol is projected to be higher by Rs2.50 to Rs2.80 and that of HSD to go up by Rs8 to Rs8.50 per litre. Interestingly, the imp­ort premium on petrol has dropped by almost 21pc to $10.7 per barrel over the last fortnight when compared to $13.50 in last few days of March and the rupee strengthened by about 40 paisa against a dollar to Rs278.20. The net impact is estimated to be about Rs2.80 per litre increase in petrol price from existing rate of Rs289.41.