HomeIndiaLPG, Diesel and Petrol Prices Will Increase Rapidly in the Coming Days

LPG, Diesel and Petrol Prices Will Increase Rapidly in the Coming Days

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In the coming days, the price of LPG cylinders, petrol and diesel may increase further. The costs of LPG cylinders were raised earlier this month, but petrol and diesel prices have been stagnant for a few days now. After a few weeks of stability, an increase in the price of gasoline and diesel can be seen. The same could be the case with LPG as well. The main reason for this is the massive increase in the price of crude oil. Crude oil prices have been climbing continuously for the last four days. This increase is a record high of the previous three years.

Crude oil prices are trading at $77 per barrel in the global markets. A day earlier, these prices were recorded at $ 77.65. Looking at the condition of crude oil trading, this is the most significant increase since October 2018. Keep in mind that there was no Covid wave in the world in 2018; even then, the oil prices had increased rapidly. In today’s date, the wave of Kovid is slowing down; then, there is a rise in the prices of oils.

Up to three times the price

To understand how the Corona epidemic broke the back of crude oil in 2019, one can see its prices in the global market. In 2019, crude oil prices were trading at $25 per barrel. To date, it has registered a significant increase of more than three times. Its biggest impact can be seen in India because most of the oil is imported here. It can be assumed that due to the increase in the price of crude oil, the prices of petrol and diesel in India can gallop. The same can happen with LPG cylinders as India is dependent on imported gas.

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Where did the prices come from?

A Reuters report says crude oil prices will run sideways as demand for it is seen increasing worldwide. To understand how tight the demand for crude oil is becoming, you can look at the prices of this year. A chart from PPAC and investing.com shows that on January 1, 2021, the cost of crude oil was $ 51.09 per dollar. On September 23 2021, the same price became $ 77.38. In just eight months, the price of crude oil has seen an increase of 51%.

The chart of PPAC and investing.com shows, on January 1, 2021, the price of petrol was running at Rs 88.71 on September 23; the same price touched Rs 101.19. This is an increase of 21 per cent. This was also the case with diesel. The cost of diesel per litre on January 1 2021, was Rs 73.87, while on September 23, it reached Rs 88.62.

This increase is based on 20%. That is, in the matter of rising prices, petrol and diesel are running side by side. In the times to come, it would be unwise to underestimate diesel compared to petrol, as the price trends suggest.

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LPG cylinder prices will also increase

The same situation can be seen in the price of the LPG cylinder as well. ‘Business Insider’ has quoted a report by research company CLSA, saying that a significant increase in domestic gas prices can be seen in the global market. It is possible to increase the cost of gas by up to 70 per cent in October 2021. Prices can reach up to $3.3 per mmBtu. These prices will almost double in April 2022 and may touch $6.7. In June 2020, the cost of natural gas was $1.43 per mmBtu.

If experts are believed, the commoner may get a big blow from the rising prices. Those who have invested in shares of oil and gas companies can offset these prices. A report suggests that due to rising costs, ONGC can make significant gains as its stock can see a rise of up to 40 per cent. Similarly, Indraprastha Gas, Mahanagar Gas and Gujarat Gas can gain 12-15 per cent.

Ashish Kumar Mishra
Ashish Kumar Mishrahttps://www.spotnews18.com/
Ashish Kumar Mishra is the Founder and CEO of Spot News 18. He created Spot News 18 on 30 June 2019. His intention in making these News Websites was only to provide correct and official news to his readers. Now, he is working on Spot News 18 to expand his website's reach to all parts of the world.

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