Petrol, diesel prices steady as global oil softens

Pump prices of petrol and diesel remained at previous days level of Rs 90.56 and Rs 80.87 a litre respectively in the national capital. This is the sixth consecutive day when fuel prices have remained unchanged.

New Delhi: Oil marketing companies (OMCs) on Monday continued on the pause mode and decided against revising petrol and diesel prices after cutting its retail rates last week on Tuesday.

Accordingly, pump prices of petrol and diesel remained at previous days level of Rs 90.56 and Rs 80.87 a litre respectively in the national capital. This is the sixth consecutive day when fuel prices have remained unchanged.

Petrol and diesel fell by 22 paise and 23 paise per litre respectively last week on Tuesday in the wake global softening of oil prices. OMCs have decided to pause price revision as they want to watch the crude price movement that has now fallen to around $64 a barrel from remaining above this level in much of the last week.

Across the country as well the petrol and diesel prices remain static on Monday but its retail levels varied depending on the level of local levies in respective states.

In Mumbai petrol continues to be priced at Rs 96.98 a litre and diesel at Rs 87.96 a litre. Premium petrol, however, continues to remain over Rs 100 a litre in the city as is the case with several cities across the country.

The OMCs went on price cut for the first time this year on two consecutive days - March 24 and 25 after keeping oil prices steady for past 24 days. It again reduced the price on March 30.

Petrol and diesel prices were last revised upwards on February 27 and ever since the retail prices remained unchanged even though during the period crude jumped to over $70 a barrel only to start falling after touching close to $60 a barrel and is now slightly up at $63.5 a barrel. It was cut for the first time this year on March 24 and 25 before revision being put on hold again.

Sources said that oil companies took time to revise petrol and diesel prices downwards earlier as they were covering up for losses incurred on its sale when crude was high and retail prices remained static. Some indications suggest that there was a loss of Rs 4 and Rs 2 per litre on sale of diesel and petrol respectively earlier that had now been more or less covered.

The current reduction in retail prices has not helped in bringing down fuel prices that have crossed Rs 100 per litre (petrol) mark in several parts of the country and continues to remain above the levels even now.

Since the beginning of February crude has gained more than $7 per barrel that pushed OMCs to increase fuel prices on 14 occasions raising the prices by Rs 4.22 per litre for petrol and by Rs 4.34 a litre for diesel in Delhi.

The petrol and diesel prices have increased 26 times in 2021 with the two auto fuels increasing by Rs 7.46 and Rs 7.60 per litre respectively so far.

Officials in public sector oil companies said that retail price may rise again if crude and product prices pick up but for now it will fall over the next few days.

(IANS)