Petrol and diesel prices have not been hiked in the last two months. In Delhi, petrol price has come down from Rs 81.5 per litre to 71.55 per litre in the last 60 days due to the massive fall in oil prices. However, now that oil cartel the Organisation of the Petroleum Exporting Countries (OPEC) has vowed to cut oil supplies by 1.2 million barrels per day, analysts are expecting prices to jump back to $70 a barrel.
This means that petrol and diesel prices will follow the suit unless there is an intervention by the government. However, the news is that oil analysts are not expecting oil to surge back to $85 a barrel anytime soon, which means that petrol and diesel prices are also unlikely to surge to record high levels.
On October 3, the government announced excise duty cut of Rs 1.5 a litre on both petrol and diesel and also asked oil companies to absorb a loss of Re 1 per litre. Read more