Monday, August 15, 2022

Diesel completes a month without retail price revision

By IANS Updated: Nov 02, 2020 12:34 pm

New Delhi, Nov 2 (IANS): Auto fuel diesel on Monday completed one full month without any revision in its retail prices across the country.

The auto fuel prices were revised downwards to current levels exactly a month back on October 2. But since then, oil marketing companies have not changed its price suggesting stability in the oil market.

Average International Crude prices remained just a $ 1 per barrel below  at around $ 40 a barrel in October as compared to September. This according to IndianOil chairman S.M. Vaidya is a minor change warranting any change in retail prices of petrol and diesel.

The OMCs in India have been holding on to the retail price of petrol and diesel for close to a month now. Even on Monday, the price of two petrol products remained unchanged. With this, petrol prices have now been unchanged for over a month (41 days)while diesel prices have been at the same level as on October 2.

Price of petrol in the national capital was at INR 81.06 per litre. In Mumbai, Chennai and Kolkata, the fuel was sold for INR 87.74, INR 84.14 and INR 82.59 per litre, respectively.

Diesel prices in Delhi, Mumbai, Chennai and Kolkata were at INR 70.46, INR 76.86, INR 75.95 and INR 73.99, respectively.

But with fresh indications on global oil prices, domestic oil companies could revise the retail price downwards. However, their margins would be protected as oil demand in the country had picked up lately, getting over even the last year’s numbers.

Global crude prices are already down close to 10 per cent over the week with oil now selling close to $38 a barrel from earlier levels of over $ 42 per barrel. But with lower oil demand and rising inventory, there is fear among oil producing companies that crude prices may start falling again.

Retail sales have picked up with the gradual reopening of the economic activities. First time since lockdown, diesel sales in the country have crossed over the pre-covid level with the country’s most widely consumed fuel witnessing a nine per cent year-on-year growth in the first 15 days of October.

The surge in demand after months of subdued sales is the direct result of an increase in the transport activities ahead of the festival season as consumers move out to make those necessary purchases.

By IANS Updated: Nov 02, 2020 12:34:09 pm