Fuel Prices may rise by 5-8% in 3-4 months, says Crisil

According to Crisil Research, fuel prices are likely to rise by around 5-8% in the next 3-4 months. This rise will be a result of the recent decision taken by the Organization of Petroleum Exporting Countries (OPEC) to cut production of crude oil by 1.2 million barrels per day.

This production cut will result in a change in the supply-demand equation, thus pushing the price of Brent crude to $50-$55 per barrel by March 2017. Experts also believe that if the Brent reaches $60 per barrel, the price of petrol in India could touch Rs. 80 per litre, while diesel could cost Rs. 68 per litre.

However, it remains to be seen whether the production cut decision taken by OPEC is properly adhered to. In the past, there have been multiple instances when various OPEC countries have broken away from production cut agreements due to domestic compulsions.

Source: ET Auto