Fuel bill is only set to increase over the next few months as global supply faces a critical situation on the anvil. Recent data indicates that crude oil supplies have almost peaked with Opec left with just 900,000 to 14,000 barrels per day, the lowest spare capacity in the last 35 years. And it is expected that the demand for oil is set to grow about 2 % globally.
According to Energy Information Administration (EIA) report as many as 9 out of the 10 Opec countries are left with no spare capacity. This would leave very little scope for any significant jump in crude oil supplies in the near future.
The government is expected to shortly take up the issue of a price revision of auto fuels in line with the global trend of hardening prices. Prices are unlikely to soften in the near future. With oil production flat, there are minimal chances of a price descend is slim.