Hmm... Another round of petrol price increase and it will now be around Rs 63/lit at Chennai, but I fail to understand why?.
Since Jan 2010, I lost count number of time fuel price was increased, if today increase if taken into account, it most likely to be the 5th since Jan 2010. I am wondering what could be the reason, well people linked with this industry might say "petroleum price in the world market has increased ". Oh really....., my mind is refusing to accept it.
Let's quickly look as how petroleum price movement was in the last couple of year. It peaked to 132 USD per barrel in June 2008, the average petrol price in Indian market was around Rs 50 INR /lit. Then came a huge drop, in Dec 2008, it dropped to a whopping 45 USD per barrel, the retail petrol price in the Indian market was reduced to about Rs 45 INR/lit ( a drop of just 10%, whereas comparatively it should have become Rs 15~20 INR/lit in Dec 2008 when compared to international price).
When gold prices movement in India is based on international price, why not then the petroleum prices?
Now, in Jan 2011, it is still at 90 USD per barrel and never at all time high of 132 USD as in 2008, but still in retail market petroleum price to common man is at all time high in India.....My mind was refusing to get reason or logic for such petroleum price increase...
Its bound to "fuel" another round of inflation...
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