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Petrol, diesel prices can rise by Rs 12, LPG by Rs
280 a cylinder: Nomura
Besides the petrol, diesel and LPG prices, compounding the woes for manufacturers
and consumers alike is the sharp hike in prices of natural gas starting April 1 for a
period of six months
Petrol, diesel and LPG (liquefied petroleum gas) prices are set to
burn a bigger hole in your wallet and upset the household budget
over the next few weeks, warn analysts. Since March 22, petrol
and diesel prices have risen cumulatively by around Rs 6.40-6.50
per litre (i.e., by 6.3 per cent and 7.1 per cent respectively), as of
March 31.
“We expect further price hikes of Rs 12 for petrol and diesel
price hike (this assumes global petrol/diesel prices of $132-136 a
barrel, which corresponds to Brent crude oil price of $112 a
barrel). LPG prices have been raised by Rs 50 per cylinder for a
14.2 kg cylinder (i.e., by around 5.5 per cent). Around Rs 280 per
cylinder increase is still pending to avoid under-recoveries. This
reflects higher commodity prices and escalation of other costs like
shipping, insurance and logistics overheads,” wrote Sonal Varma,
chief economist for India and Asia ex-Japan at Nomura in a recent
co-authored note with Aurodeep Nandi.
Higher cost of fuel, including higher gas prices, will make
transportation services expensive – railways, bus, taxi/auto
rickshaw, school bus and air fares (the latter reflects prices of
aviation turbine fuel. Cumulatively, transport services account for
2.45 per cent of the CPI (consumer price index) basket…