Fuel Price Hike - discussion on de regularising diesel from page 15

Oil prices creep higher

World oil prices crept toward the $127 level in Asian trade on Monday as traders predicted costlier crude despite Saudi Arabia's disclosure that it had boosted production, analysts said.

New York's main oil futures contract, light sweet crude for June delivery, rose 62 cents to $126.91 per barrel.

The benchmark contract had peaked at a record $127.98 on Friday before settling at an all-time closing high of $126.29.

Oil prices have surged some 25 per cent since the start of 2008, when they crossed $100 a barrel for the first time.

Goldman Sachs, the most active investment bank in energy markets, predicted a jump to $141 in the second half of the year for crude.

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Rs 10/ltr hike in petrol, Rs 5 in diesel

Petroleum Ministry is seeking a Rs 10 per litre increase in petrol and Rs 5 a litre hike in diesel prices along with cut in customs and excise duties to offset the impact of surge in crude oil prices that have touched 135 dollars per barrel.

"The situation is getting to be alarming. We need to stem the rot in the beginning," Petroleum Secretary M S Srinivasan told reporters after a stock-taking meeting with the heads of oil PSUs.

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Looks like fuel price hike is going to be more regular. Andit appears as if the small car segments (hatch & sedan) might just see gains in their sales numbers when compared to the bigger sedans.

Bhushan

Here's an Economic times article which explains what factors influence the fuel price. Nice read.

What drives crude oil prices?

Crude oil is one of the most basic global commodities . Fluctuation in the crude oil prices has both direct and indirect impact on the global economy . Therefore, the prices of crude oil are tracked very closely by investors the worldover. Crude oil prices have gone up to record levels of USD 125 per bbl (rise of around 70 percent from previous year's levels).

The price variation in crude oil impacts the sentiments and hence the volatility in stock markets all over the world. The rise in crude oil prices is not good for the global economy. Price rise in crude oil virtually impacts industries and businesses across the board. Higher crude oil prices mean higher energy prices, which can cause a ripple effect on virtually all business aspects that are dependent on energy (directly or indirectly).

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