In this era of inflation, the common people of the country may face another setback. It is being reported that petrol and diesel prices may rise in November, according to Oxford Economics.
Petrol and diesel prices may increase in November.
Petrol and diesel prices in the country may soon see an increase. We're not saying this, but experts are claiming this. On Thursday, Bloomberg, citing Oxford Economics, reported that the government may increase petrol and diesel prices in November. Let's explore the reasons behind the fuel rate hike.
Last chance before election campaign
"We believe November may be the last viable opportunity for a price hike," Alexandra Harman Prasad, lead economist at Oxford Economics, wrote in a note. "After this, campaigning will intensify for the state elections early next year."
It's worth noting that assembly elections are scheduled for early 2027 in several key states, including Uttar Pradesh, Punjab, and Uttarakhand. This will trigger a vigorous election campaign. Governments typically raise prices before elections to avoid political losses.
How much can petrol and diesel prices increase?
Due to the US-Iran war and ongoing tensions in the Middle East, the price of crude oil in the international market has surpassed $110 per barrel. This is causing losses for the country's state-owned oil marketing companies (OMCs). They are incurring losses of approximately 8 rupees per liter on petrol and 9 rupees per liter on diesel. Consequently, there is no other option but to increase prices.
However, it's unlikely that prices will be raised drastically all at once. According to reports, the November hike could be about half of the 7.5% increase announced in May this year. However, the government has yet to make any official announcements on this matter.
Inflation may increase
Harman Prasad also stated that high petrol and diesel prices could push retail inflation to 6.2% in the October-December quarter and 6.5% in the first quarter of 2027, exceeding the Reserve Bank of India's (RBI) safe range of 2%-6%. Consequently, it is feared that the RBI may raise the repo rate by another 0.25%-0.25% in its December and February monetary policy meetings, which could lead to higher loan prices.
What is the price of petrol and diesel today?
State-owned oil companies (HPCL, IOCL, and BPCL) have not made any changes to petrol and diesel prices today. In Delhi, petrol prices remain stable at ₹102.12 per liter and diesel at ₹95.20 per liter. The cheapest petrol in the country is in Port Blair, where petrol costs ₹88.66 per liter and diesel costs ₹84.56 per liter. The most expensive fuel is in Chittoor, Andhra Pradesh, where petrol costs ₹118.34 per liter and diesel costs ₹106.06 per liter.
