Petrol and diesel prices in India may reportedly rise by Rs 5-6 per litre after last week’s drone attack on Saudi Arabia’s Aramco oil refinery which is the largest oil processing unit in the world. It is expected to affect India’s oil marketing companies including Indian Oil Corp, HPCL and BPCL.
MK Surana, Chairman of HPCL told Reuters on Monday, "Price of product at fuel outlets might be impacted if crude price continues to go up by 10%’’.
However, Indian fuel marketing companies fix the prices of petrol and diesel at retail outlets based on an average of last 15 days of benchmark price of petrol and diesel in the Middle East.
As per a report by Kotak Institutional Equities, the prices of the both petrol and diesel may increase by Rs 5-6 per litre.
The report reads, "We do not rule out a possibility of moderation in marketing margins on auto fuels—a $10/bbl rise in global crude and product prices may require OMCs to increase retail price of diesel and gasoline by Rs5-6/liter in the following fortnight’’.
Before the attack, Brent crude oil spot prices averaged $59 per barrel in August, down $5 per barrel from July and $13 per barrel lower than the average from the same month last year.