Latest data show that the incremental rise in petrol prices in the last 17 days may continue for some more time. However, with the crude oil prices softening from the highs recorded in March, and the exchange rate improving slightly, the degree of the rise in retail petrol prices may reduce in the coming days. But meaningful reduction in retail prices can only be expected if the government cuts the Centre’s excise duty component further.
In the last 17 days, the retail petrol prices were revised upwards 14 times. From ₹95.41 on March 21, the retail petrol price in Delhi increased to ₹105.41 by April 7 (Chart 1). In other metros such as Mumbai, Kolkata and Chennai, the prices reached record levels of ₹120.51, ₹115.12 and ₹110.85 per litre, respectively, depending on the State’s taxes.
