Historic Bullet Bitten; Fuel Prices Hiked

Fuel vs Wallet

Finally the Indian government bites the historic bullet and frees petrol prices of of regulation, thus bringing it in line with the global crude oil prices. While diesel still remains regulated, that however hasn’t prevented it from seeing a hike too. So, in effect, you the consumer will be paying INR 3.73 more per liter of unleaded petrol and INR 2 more per liter of regular diesel.

While this move will only increase the already high inflation, it was just a matter of time before the pricing mechanisms of fuel was to be deregulated. It has now happened partially with petrol prices bearing the major brunt. Still playing to the gallery, the government seems to have played moderately safe by continuing to keep diesel under regulation, although that is one measure that can’t go on forever.

Sometime in the future, diesel prices too will be deregulated just like petrol prices have been and once that happens, diesel could actually cost more than petrol. But when? That, only the government knows. With this latest fuel price hike, car sales, which have been shooting through the roof, could simply skid. Meanwhile, here are the prices of both petrol and diesel in India’s four metros.