Fuel prices remain static amid softening of global crude

Petrol and diesel prices in the country remained static for the 25th consecutive day on Wednesday as oil marketing companies (OMC) continued to wait and watch the situation amidst fluctuating global crude prices.

Accordingly, in the national capital, petrol continues to be sold for Rs 101.84 per litre, while diesel is also being sold at the unchanged price of Rs 89.87 a litre on Wednesday.

Across the country as well, fuel prices remained unchanged providing some relief to consumers already feeling the heat of higher inflation that has raised prices of several other commodities including food items.

Global crude prices have now softened to just about $70 a barrel after it swung in all directions in July starting with a low of $70 a barrel to quickly rise to over $77 a barrel, only to fall soon below $70 a barrel and crossing $75 a barrel later in the month.

Lower oil and product prices should have actually resulted in consumers getting relief by way of a cut in retail price of petrol and diesel. Rather, OMC have decided it’s best to wait and watch the disruption now as crude prices are still swinging.

The pump price of fuel has been static since July 18.

In the city of Mumbai, where petrol prices crossed Rs 100 mark for the first time ever on May 29, the fuel price is at Rs 107.83 per litre. Diesel prices in the city is also at Rs 97.45, the highest among metros.

Petrol prices in all metros have now crossed Rs 100 per litre mark. In Chennai, petrol is priced at Rs 102.49 a litre and in Kolkata Rs 101.08 a litre. Diesel is also priced at Rs 94.39 and Rs 93.02 per litre in both cities respectively.

The long price pause has come after fuel prices increased on 41 days in the current financial year. The 41 increases have taken up petrol prices by Rs 11.44 per litre in Delhi. Similarly, diesel has increased by Rs 9.14 per litre in the national capital.

Prices of both auto fuels reduced only once in April by 16 and 14 paise per litre respectively. Diesel prices were also reduced by 16 paise per litre in Delhi on July 12.

Since April 2020, petrol prices have increased by Rs 32.25 per litre from Rs 69.59 a litre to Rs 101.84 a litre now in Delhi. Similarly, diesel prices during the period have increased by Rs 27.58 per litre from Rs 62.29 to Rs 89.87 a litre in the national capital.