Fuel prices have begun to rise and this is affecting not only consumers of fuel, but overall, it is impacting the mood and behaviour.
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While Brent crude oil is priced around $73.56 per barrel now, in 2013 the same was priced at over $100 a barrel. However the fuel prices across the country have reached 2013 levels, the despite crude oil being about $26 cheaper, per barrel.
In Delhi, the price of petrol has increased to Rs. 74.08 per litre, which is the highest in the last 5 years. The price of petrol was Rs 74.10 for a litre. in September 2013. Similarly, in Mumbai the price has reached Rs. 81.93 per litre, which is amongst the highest in the country. In Kolkata and Chennai too, the prices are at a half a decade high at Rs. 76.78, and Rs 76.85 per litre respectively. The previous highs in these cities were Rs 78.03 (Kolkata, August 2014), Rs 82.07 (Mumbai, March 2014) and Rs 76.93 (Chennai, July 2014).
Diesel prices are also not spared and they have increased too. Diesel in Delhi, Kolkata, Mumbai and Chennai is now selling at Rs. 65.31, Rs. 68.01, Rs. 69.54 and Rs. 68.90 per litre respectively.
Crude oil prices have gone up and this surge is due to the ongoing supply cut by the OPEC (Organisation of the Petroleum Exporting Countries).
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On the contrary, the demand for crude oil has gone up. Hence the balance between demand and supply has taken a hit. Fuel prices change on a daily basis now, unlike the fortnightly revision, which used to happen earlier.
India is now the 4th largest car market in the world and the growth n the number of vehicles being sold is also increasing the demand for fuel. Also, a high number of people now use personal vehicles to travel intercity, thereby increasing the number of vehicles on the road.
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