After witnessing a series of reduction in the last three months of 2018, fuel prices have been soaring again in the new year. The price of diesel was increased by 30 Paise today and the petrol price went up by 28 paise. Moreover, the retail price of diesel in Delhi increased from ₹ 64.18 paise to ₹ 64.48 paise and the retail price for petrol in the national capital went up from ₹ 70.13 to ₹ 70.41. The fuel prices have been increased for the seventh time in 2019.
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Though the authorities have not cited any such reason for the series of marginal increase, the rise could be on account of an increase in crude oil prices in the global market. Global crude oil rates have gained strength after the implementation of production cuts by top producers, recovering from levels below $50 a barrel registered last month.
The upward trend in the fuel prices can be worrisome news for the auto manufacturers in India as it had impacted customer sentiments drastically earlier in 2018 which led to a slump in the auto sales in the third quarter of FY19. The industry is looking forward to recovering from that loss in the Q4 in a bid to come close to its annual sales target. However, if fuel prices continue to rise further it may demoralize customer sentiments and in-turn may take a toll on sales.