Will Petrol and Diesel Prices Increase in Telangana Hyderabad and Other Cities as Crude Oil prices Increased ?
Hyderabad and other indian cities may see an increase in the price of petrol and diesel after investment firm Goldman Sachs issued a warning that if russia and saudi arabia do not end their drastic supply cuts, crude oil prices are expected to soar into the triple-digit range. The North sea produces Brent crude, which serves as the basis for global oil prices. Brent crude is now trading at USD 90.44, but Goldman Sachs predicts it will eventually hit USD 107.
Due to Saudi Arabia's announcement that it would prolong its production cutbacks till the end of the year and Russia's announcement that it would extend its export curbs of 300,000 barrels per day for the same time, there has been an increase in oil prices. In addition to Saudi Arabia's and Russia's position, Chinese manufacturing data is rebounding to growth, which will exacerbate the pessimistic mood in the oil markets. All of these variables might cause crude oil prices to increase further, raising the likelihood that petrol and diesel prices would rise in hyderabad and other indian cities.
JM Financial Institutional Securities’ prediction
Due to Saudi Arabia's announcement that it would prolong its production cutbacks till the end of the year and Russia's announcement that it would extend its export curbs of 300,000 barrels per day for the same time, there has been an increase in oil prices. In addition to Saudi Arabia's and Russia's position, Chinese manufacturing data is rebounding to growth, which will exacerbate the pessimistic mood in the oil markets. All of these variables might cause crude oil prices to increase further, raising the likelihood that petrol and diesel prices would rise in hyderabad and other indian cities.
JM Financial Institutional Securities’ prediction
However, considering that important state elections begin in november and December, according to a report by JM Financial Institutional Securities, the national government may lower the price of gasoline and diesel by Rs 3 to 5 per liter around Diwali. The average man will benefit from any reduction in oil prices by being relieved of the recent spike in inflation, while OMCs' profits may be at stake. Given that the price of Brent crude is now above USD 90, it is unclear if the administration would prioritize state elections and proceed with a price drop or increase if crude oil prices continue to rise and reach USD 107, as forecasted by Goldman Sachs.
How prices are calculated in India?
How prices are calculated in India?
Every day, oil corporations evaluate and adjust the pricing of fuel and diesel. Every morning at 6 a.m., the new pricing goes into effect. The benchmark fuel's average price on the worldwide market over the previous 15 days as well as foreign exchange rates serve as the basis for the daily review and modification of pricing. oil Marketing Businesses are free to change product prices in accordance with economic factors.
Petrol and diesel prices in Hyderabad
Due to differing Value Added Tax (VAT) rates imposed by the state governments, the cost of fuel and diesel varies from state to state. The cost of gasoline and diesel in hyderabad was 109.66 and 97.82 per liter, respectively, as of september 7, 2023.