LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS

Read in App
Business News » India News

Daily price change: Fuel rates up 8% since mid-June, says Icra

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Tue, Sep 26, 2017
04:59 pm
PTI
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

Petrol and diesel prices have jumped 8 per cent since daily price revision was implemented in mid-June, Icra said today, warning that a sustained price hike can hit demand growth and create inflationary pressures.

The rise in fuel rates can be attributed to a 14 per cent increase in international petrol and diesel prices beside rise in commission paid to petrol pump dealers, the ratings agency said in a report.

Retail selling price of petrol in Delhi showed a 7.9 per cent increase from Rs 65.23 per litre as on June 17 to Rs 70.41.

Besides rise in international oil prices, the increase was also due to a 40 per cent rise in dealer's commission to Rs 3.57 per litre from Rs 2.55 earlier and moderate increase in marketing margins, it said.

"Sustained rise in fuel prices, in absence of moderation in taxes (excise duty and VAT), could however impact the growth in demand, besides leading to inflationary pressures in the economy," Icra said.

The government had allowed the oil marketing companies to follow dynamic pricing of auto fuels across the country from June 16, 2017.

Due to the earlier practice of fortnightly revisions, the price changes were at times sharp which would now be gradual, leading to lesser resistance from the public and lower risk of political intervention, it said.

Icra's K Ravichandran said, "As dealers and some consumers were able to predict price movements, they had been resorting to bulk purchase or draw down from the inventory towards the end of the fortnight, depending on the direction of prices, resulting in some lumpiness in sales and opportunity loss on the marketing margins for oil companies." With greater autonomy and lower political intervention, oil firms could over time expand marketing margins, albeit increasing competition from private retailers would eventually moderate that.

"Moreover, any intervention by the Government, which limits the freedom of oil marketing companies (OMCs) in price revisions, in light of rising fuel prices could be a credit negative," he said.

Icra said Indian refiners will get a short term margin lift due to disruptions in US caused by severe hurricanes.

Hurricane Harvey led to closure of a fifth of the US refining capacity or about 3.2 million barrels per day in August end, dropping capacity utilisation sharply to seven year low of 79.7 per cent.

Along with refining, many crude oil and petroleum product pipelines were also affected by the hurricane.

"Due to sudden spike in crack spreads (difference between crude oil price and product rates) globally due to this disruption which is yet to be fully normalised, the domestic refiners will gain in the form of higher gross refining margins (GRMs) in the near term, leading to improved profitability," it said.

Over the medium to longer term, GRMs of domestic refiners are, however, expected to weaken due to additions to global refinery capacity at 4.4 million barrels per day over 2017- 2020, exceeding the demand growth at 3.3 million barrels a day.

Icra said delays in commissioning of some of the proposed projects and closure of unviable refinery capacities could partly support GRM levels over the medium term.

 

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

LATEST NEWS

PUBG Mobile India future in Dark now? Check details here

Income Tax Holiday: Realtors demand extension for affordable housing projects from FM Nirmala Sitharaman

Bitcoin, Tesla and US technology stocks were the two assets deep in the bubble territory indicated by Deutsche Bank

ZeeBiz report gets thumbs-up from govt: Scrappage policy green flagged by Modi Cabinet; Anil Singhvi decodes impact on owners, auto-makers | Explained

Karima Baloch funeral: ''Pakistan has blood on its hands, 100%''

Katrina Kaif reveals how she wants to live her life

TikTok to cut jobs in India after ban extends

Sasikala released from prison after serving 4-year jail-term | Close aide of former CM Jayalalithaa

Yes Bank Share price: After Q3 result, asset Quality back in focus, Elara Capital recommends Sell with a target price of Rs 6

Offline teaching for Classes 9, 11 in Gujarat from Feb 1

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved