Oil Marketing Companies hold petrol, diesel price revision even as global crude rates rise
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Auto fuel prices in the country have maintained stability amid volatility in global oil prices with crude on the boil again, rising sharply for the past few days.
The oil marketing companies (OMCs) on Thursday kept pump prices of auto fuels -- petrol and diesel -- unchanged, the eleventh consecutive day of no revision, as they preferred to watch the global oil situation before making any revision in prices.
Accordingly, the price of petrol and diesel remains unchanged at Rs 101.19 and Rs 88.62 per litre in Delhi, as per Indian Oil Corporation, the country's largest fuel retailer.
In Mumbai, the petrol price was stable at Rs 107.26 per litre on Thursday while diesel rate also remained unchanged at Rs 96.19 a litre.
Across the country as well the petrol and diesel prices remained static on Thursday, but their retail rates varied depending on the level of local taxes in a particular state.
Fuel prices have been hovering at record levels on account of 41 increases in its retail rates since April this year.
Under the pricing formula adopted by oil companies, rates of petrol and diesel are to be reviewed and revised by them on a daily basis. The new prices become effective from morning at 6 a.m.
The daily review and revision of prices is based on the average price of benchmark fuel in the international market in the preceding 15-days, and foreign exchange rates.
But, the fluctuations in global oil prices have prevented OMCs to follow this formula in totality and revisions are now being made with longer gaps. This has also prevented companies from increasing fuel prices whenever their is a mismatch between globally arrived and pump price of fuel.
Fuel consumers can expect fuel prices to remain unchanged or get some relief by way of a cut in days ahead as global oil is expected to soften again. Oil cartel OPEC and its allies have agreed to gradually raise production levels that should prevent upward price movement. The concerns on demand due to the pandemic is also affecting oil prices.
After touching $ 74 a barrel-mark couple of weeks back and then falling, benchmark Brent crude prices have bounced back to reach closer to $ 76 a barrel now.
