The price of petrol will exceed the Rs 50 by April

The new increase comes after the price hike on January 21. This was unavoidable due to the evolution of oil prices on the international market which had continued to skyrocket. On Wednesday, it had reached $ 114.04 per barrel .

The Petroleum Pricing Committee (PPC) called to meet by next week, was left with one option under the new price mechanism, that of passing the increase directly to consumers.

One of the criteria established under the current structure stated if the percentage increases between the calculated price and the current price at retail is between five and 15 per cent, an increase is inevitable. Meanwhile, the price of diesel will also be revised upwards from Rs 39.90 to Rs 42.50.

The insurgency in the Arab world, Tunisia, Egypt and Libya, has contributed to soaring oil prices from February until now. The winter period in Europe and the United States has also pushed oil to exorbitant highs.

The increased demand due to high energy consumption due to a severe winter episode complicated an already difficult situation for consumers. However, summer was approaching fast and would largely help to contain the rise in crude prices.

In such circumstances, we should expect a return to normal in the evolution of oil prices that is $ 94 per barrel at.

Thus, if the percentage decline between the calculated price and the retail price is between seven and 10 per cent, there will be a drop in retail prices, according to criteria established by the PPC.

According to a spokesperson of the State Trading Corporation an increase was in the pipeline.

“Our finances will not allow us to absorb these higher oil prices this time,” said a senior officer from the STC.

“The trend in the international market leaves us no choice but to apply a premium. There is also the possibility that the situation improves by early May with a return to normalcy in the Middle East and with the end of the winter period. However, the movement of prices from January to date will logically affect prices,’’ the officer added.