Kochi: Even as the petrol price has already crossed the Rs 90-mark per litre in several areas in the country, it has touched Rs 90 per litre in Kerala for the first time. This price was reported in some rural areas of Thiruvananthapuram district. The highest fuel price in Kerala is recorded here as the transportation costs to the southernmost part of the state are obviously higher than in other parts.
The petrol price in rural areas of several districts of Kerala has crossed Rs 89. Meanwhile, the diesel price has crossed Rs 83.
With the oil companies increasing the price frequently, petrol and diesel prices have been scaling new heights daily. The price of petrol increased by Rs 2.11 and diesel by Rs 2.26 in the last two weeks.
Though the crude oil prices had nose-dived last year, it did not benefit the public as the Centre had earlier increased the excise duty. And now the central government is not reportedly ready to reduce the excise duty either.
Both excise duty and road cess are charged by the central government.
The price of crude oil is $56 per barrel in the international market.
Rs 100-mark likely soon
The price of extra premium petrol had crossed Rs 100 per litre at Sri Ganganagar in Rajasthan the other day. Wednesday's price was at Rs 101. The price of petrol is at Rs 98 at Sri Ganganagar.
The petrol price is above Rs 94 in cities such as Aurangabad, Bhopal, Indore, and Jaipur. The price in Mumbai is Rs 93. The price has crossed the Rs 90-mark in Nagpur, Pune, Thane, Vishakhapatnam, Nasik and Kolhapur. The price has nearly touched Rs 90 in cities of Chennai, E-Rode, Guwahati, Hyderabad, and Madurai.
The diesel price too is nearing the Rs 90-mark.
The diesel price in Jaipur at Rs 86. The price has crossed Rs 84 in Visakhapatnam, Nagpur, Indore, Bhopal, and Aurangabad.
Oil demand on the rise
The impetus given by the COVID-19 vaccination to the markets has led to a surge in crude oil demand globally. This explains the recent spike in fuel price.
Though the demand for petroleum products had dipped in the wake of the COVID-19 pandemic, it has revived of late. The demand for oil in the major-oil importing countries such as India and China is on the rise.
The country's crude oil imports in December was the highest in two years. India imported 2.04 crore tonne oil in December, according to the Petroleum Planning and Analysis Cell of the Petroleum Ministry. This is an increase of 9.5 per cent, compared to last year.
Another reason for the rising oil demand is the increase in economic activities in the country. Also, reports of Saudi Arabia cutting down on production have also led to the price hike of crude oil. So far, the price has increased by 5 Dollars this year.