Fuel demand in India hit highest levels in four months driven by the festive spirit in October, even as prices remained stagnant despite a drop in crude rates. As OPEC+ decided to cut output, oil from Russia outsold fuel from Saudi Arabia and Iraq to make it India’s biggest supplier in the past month. Although commercial LPG prices have been slashed by Rs 115, prices of petrol and diesel in Indian cities have remained unchanged, despite expectations of relief from Indian Oil.
Price cuts saved for polls?
Even as demand from China has remained uncertain, a decline in inventories of US oil firms, have triggered a rise in oil prices again. Since fuel price hikes were put on hold till the end of the Uttar Pradesh elections despite losses to oil firms, speculation is rife if the price cuts pushed off for now will be implemented before Himachal and Gujarat go to polls. On the other hand, India has reduced the windfall tax on crude oil, while raising duties on export of diesel and jet fuel.
Delhi continues to sell petrol at the lowest rates for Rs 96.72 per litre, with diesel at Rs 89.62 per litre.
Financial capital Mumbai has the priciest petrol at Rs 106.31 per litre, while diesel stayed at Rs 94.27 per litre.
Chennai sold petrol and diesel for Rs 102.65 per litre and 94.24 per litre respectively, while Kolkata pays Rs 106.03 for a litre of petrol and Rs 92.76 per litre for diesel.
Electrification to counter rising pollution
With fossil fuels in focus, India’s road transport minister Nitin Gadkari has claimed that electric vehicles will be as affordable as petrol vehicles by next year. EVs have already been adopted at Delhi airport to curb the severe air pollution which has been tormenting the national capital for days. Although states such as Haryana are working on generating revenues for farmers through ethanol from stubble to be mixed with petrol, stubble burning this year has added to Delhi’s air woes.
