Cheap fuel: After new highs, experts see petrol, diesel prices falling soon
Diesel prices in Delhi on Tuesday scaled a new all-time high of Rs 59.14 per litre, while other cities too saw a considerable increase. However, industry experts and the government believe that prices will ease in the next few weeks as international prices are showing a declining trend. In Delhi, the price of petrol, too, was at a two-year high on Tuesday at Rs 70.88 per litre. Since the implementation of daily pricing from June 16 this year, Indian basket crude oil has gone up by around 19 per — from $46 a barrel to $55.36 a barrel. However, domestic retail selling prices of petrol and diesel in Delhi have gone up by only eight per cent during this period.
"We see a decline in crude oil prices now. Hence, there will be a balancing of fuel prices in the coming weeks. The positive global changes include increase in rig utilisation and also rise in production from Libya and Algeria, which will increase supply," said Dhaval Joshi, an analyst with Emkay Global Financial Services.