Relief is being provided for consumers with rising fuel prices as oil marketing companies (OMCs) have kept pump prices of petrol and diesel unchanged post revision of duties by the state governments on Diwali eve. Accordingly, petrol and diesel prices remained static for the 15th consecutive day on Friday, under the daily price revision mechanism followed by oil marketing companies.
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 in Kolkata where the petrol price 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 prices in Chennai also remains at Rs 101.40 per litre and diesel Rs 91.43 per litre. Across the country as well, the fuel rates largely remained unchanged but the retail rates varied depending on the level of local taxes.
The global crude prices which has touched three year high level of over $85 a barrel on several occasions in past one month has softened now to below $ 82 barrel. Rise in US inventory has pushed down crude prices but OPEC+ decision on only gradual increase in production in December could raise it further. This could put pressure on oil companies to revise fuel prices upwards again.
Before price cuts and pause, diesel prices have increased on 30 out of the last 56 days taking up its retail price by Rs 9.90 per litre in Delhi. Petrol prices have also risen on 28 of the previous 52 days taking up its pump price by Rs 8.85 per litre. Since, January 1, 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 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 the Centre finally decided on duty cut.
-With PTI Inputs