Petrol, diesel prices static as global oil situation under watch

Oil marketing companies have continued to provide relief to consumers from rising fuel prices post revision of duties by the central and state governments on Diwali eve.

Accordingly, petrol and diesel prices remained static for the 20th consecutive day on Wednesday under the daily price revision mechanism followed by oil marketing companies.

So, the pump price of petrol in Delhi, which fell to Rs 103.97 a litre at 6 a.m. on the Diwali day on November 4 from the previous day's level of Rs 110.04 a litre, remained at the same level on Wednesday. The diesel price also remained unchanged in the capital at Rs 86.67 a litre.

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Even with lower fuel prices, petrol continues to be the most expensive in Delhi among all the NCR cities as the state government has not revised VAT on the petroleum products so far.

In the financial capital Mumbai, petrol continues to be priced at Rs 109.98 a litre and diesel Rs 94.14 a litre.

Prices also remained static on Wednesday in Kolkata where the price of petrol reduced by Rs 5.82 to Rs 104.67 per litre and that of diesel by Rs 11.77 to Rs 89.79 per litre in the first week of November.

Petrol price in Chennai also remained at Rs 101.40 per litre and diesel Rs 91.43 per litre.

Across the country as well, the price of the fuel largely remained unchanged on Wednesday, but the retail rates varied depending on the level of local taxes.

The global crude prices, which has touched a three-year high level of over $85 a barrel on several occasions in the past one month, has softened a bit now to around $ 82 a barrel. Rise in the US inventory and release of strategic oil by few countries has pushed down crude prices, but OPEC+ decision on only gradual increase in production in December could raise crude prices further.

Before price cuts and pause, diesel prices have increased 30 out of the last 61 days taking up its retail price by Rs 9.90 per litre in Delhi.

Petrol prices have also risen 28 of the previous 57 days taking up its pump price by Rs 8.85 per litre.

Since January 1, 2021, petrol and diesel prices have risen by more than Rs 26 a litre before the duty cuts.

The excise duty cut by the Centre on November 3 was the first such exercise since the onset of Covid pandemic. In fact, the government had revised excise duty on petrol and diesel sharply in March and again in May last year to mobilise additional resources for Covid relief measures.

The excise duty was raised by Rs 13 and Rs 16 per litre on petrol and diesel between March 2020 and May 2020 and was standing high at Rs 31.8 on diesel and Rs 32.9 per litre on petrol before finally the Centre decided on duty cut.