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After series of fuel price hikes, respite in sight as crude slides – Times of India

NEW DELHI: Galloping fuel costs could have hit the tip of the road in the meanwhile as international oil costs dropping beneath $100 per barrel has eased the stress on fuel retailers by shrinking underneath-recoveries, sources informed TOI.
“There was a threshold (for increase in the prices), based on the assumption of a certain (oil) price point. Whatever had to be done has been done. At current levels of reference (crude) rates, I don’t see more hikes. At least not in a sharp upward curve. The market remains volatile and the dollar is getting stronger. Nobody knows where crude will be headed,” a senior govt of one oil advertising and marketing firm aware of the matter mentioned.
The indicators are already there. Petrol and diesel costs haven’t been revised since April 7 after India’s crude value slid to $97.59 per barrel on April 7, a 24% drop from $128-plus reached in mid-March. Fuel costs have been final raised by 80 paise per litre on April 6, marking the 14th enhance in 16 days that made motor fuels costlier by Rs 10 a litre.
The fall in the benchmark costs have been triggered by a mixture of components easing apprehensions over the market tightening additional. Worries over demand from China slowing down as the world’s largest importer struggles with a resurgence in Covid-19 instances, a fractured Europe persevering with to purchase Russian oil weighed available on the market. The greenback’s appreciation after a hawkish stance from the US Federal Reserve contributed additional by driving merchants away from oil, thought of a excessive-threat commodity.
The authorities’s reasoning for reining in runaway fuel costs is comprehensible. The RBI in its financial coverage on Friday revised its inflation forecast upwards and development projections downwards throughout all quarters for FY23, amidst the escalated issues over Ukraine and surge in international commodity costs.
The retailers had saved pump costs frozen underneath a casual authorities diktat since November 5, which coincided with polls in 5 states, although the fee of crude purchased by home refiners climbed from $84 per barrel to over $100 in the course of the interval. They started elevating the costs from March 22, nearly a fortnight after the polls have been over.

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