Fuel Price

Notably, the November 2021-March 2022 was one of the longest retail price freezes in recent years, despite reference crude oil prices increasing by nearly $27 per barrel (or Rs 13 per litre) during the period. NThe freeze may lead to marketing losses for the oil marketing companies (OMCs) in the fourth quarter of the financial year ending March 2022 (FY22).

Besides, the underwhelming corporate results till now along with the recent rise in global crude oil prices and a weak rupee are expected to support this trend. "Sustained high inflation and tightening monetary policy globally are bringing caution among the participants," said Deepak Jasani, Head of Retail Research, HDFC Securities.

Driven by a more broad-based pickup in economic activity as the country adapts to live with Covid-19 amid higher vaccination rates, India's oil demand in second half of calendar year 2022 is expected to be 275,000 barrel per day, said S&P Global Commodity Insights which was curated by analysts JY Lim and Kang Wu.

Fears of inflationary pressures has led many central banks to tighten money supply. The trend will lead to higher interest rates and, in theory, should curb inflation. Besides, Brent crude oil prices have been steadily coming down due to rising supplies being pumped out by the US. Currently, the Brent crude oil prices are hovering in the range of $104-$110 in the last few weeks from the peak of $140 per barrel touched in early March.

"It is extremely worrisome," said Rabah Arezki, a senior fellow at Harvard's Kennedy School of Government and former chief economist at the African Development Bank, CN reported. Unrest in Sri Lanka, Pakistan, and Peru over the past week highlights the risks. In Sri Lanka, protests have erupted over shortages of gas and other basic goods, the report said.

Lately, global crude oil prices have risen due to the Russian-Ukrainian war. articipating a debate in Lok Sabha on the fuel price rise, Puri defended the Centre and said that price of petrol have been raised by Rs 9 over 12 or 13 days, whereas the international prices have shot up. He cited figures, which compared petrol prices between April 2021 and March 2022.

FADA data showed a YoY fall of 2.87 per cent in overall automobile retail sales during the month under review. he overall retail sales fell to 16,19,181 units last month from 16,66,996 units sold during the corresponding month of 2021. Also, last month's overall retail sales figure, when compared to the March 2020 period, showed a decline of 29.99 per cent.

On Saturday, the price of petrol and diesel in New Delhi were increased again by 80 paise per litre. As per pump prices, petrol now costs Rs 102.61 per litre and diesel Rs 93.87 per litre in the national capital. In the financial capital Mumbai, prices were hiked to Rs 117.57 per litre for petrol and diesel to Rs 101.79 per litre. Besides, the prices of both the transport fuels were raised in Kolkata. The petrol prices rose to Rs 122.19 and diesel to Rs 97.02 per litre.

Easing supply side constraints of semiconductors as well as healthy demand led many passenger vehicle manufacturers to report healthy wholesales during last month. Wholesale dispatches of passenger vehicles rose in March 2022. Auto major Maruti Suzuki India on Friday reported a year-on-year rise in its total sales for March 2022 to 170,395 units from 167,014 units sold during the same period of the corresponding year.

State-owned oil marketing companies (OMC) on Friday raised petrol and diesel prices for the third time this week. These prices were revised for the very first time on Tuesday after a gap of more than four months. Accordingly, the increase in the selling price, which includes state levies, central excise and cess amongst others, came days after crude oil rates saw an astronomical rise due to the Russian-Ukrainian crisis.