Mumbai: The prices of petrol and diesel are expected to rise by 5-8 per cent in the next few months following last week’s decision by the Organisation of Petroleum Exporting Countries (Opec) to cut crude oil production by 1.2 million barrels per day.
According to rating agency Crisil Research, petrol price could soar to Rs 75 per litre compared to the prevailing rate of Rs 72 per litre in Mumbai while the diesel price could go up to Rs 64 per litre compared with Rs 60 now.
The price of Brent crude could increase to $50-55 per barrel by March 2017 following OPEC’s move, and if it surges to $60 as some believe, the price of petrol could touch Rs 80 and diesel Rs 68 per litre. A cut in production always lifts prices, but the success of the OPEC agreement according to Crisil depends on adherence. Previously, there have been instances of members breaking away from the cartel because of domestic compulsions.
On the domestic front, Crisil believes that oil consumption in the near term would dip, but would rebound once it reverts to normal.