Petrol price stand TALL at Rs 89.08/l in Mumbai where as Diesel prices stand at Rs 78.97. The past week has seen crude oil prices rising up to US$ 44.48 a barrel which is more than double the price that was in april.
Situation does not look good in other cities as well because the prices have been rising for the past 10 days constantly thanks to Indian Oil, Hindustan Petroleum and Bharat Petroleum.
According to a report by ICICI Securities, the auto fuel net marketing margin has remained at levels of Rs 4.2 per litre in the current financial year till date. It has been Rs 3.34 per litre in Q3 FY2021 till date and Rs 3.59 a litre on November 25, 2020. Now because of increase in global auto fuel prices, the net margins will fall to Rs 1.05 per litre on December 1 and a negative (-) Rs 0.45 per litre on December 16. “Further price hikes are required and we are hopeful of the same to ensure net margins remain at Rs 2.0-2.5 a litre,” said the report.