Consumers have been spared another increase in auto fuel prices with oil marketing companies (OMCs) deciding to keep petrol and diesel rates unchanged on Thursday.
This is second consecutive day of fuel price pause and follows slight softening in global oil market over demand concerns prime markets in Asia seeing rising cases of coronavirus.
With fuel prices spared of another increase, the price of petrol continues to remain at Wednesday’s level of Rs 92.85 a litre and diesel Rs 83.51 per litre in Delhi.
Across the country as well the petrol and diesel price remained static on Thursday but its actual retail prices varied depending on the level of local levies in respective states.
Before Thursday, OMC was revising fuel prices on every alternate day for last one week rather than undertaking changes on a daily basis as has been practised. Accordingly, Wednesday’s price hold came after there was an increase in prices on Tuesday. There was no price increase on Monday as well.
Also, on Sunday while petrol and diesel prices were raised by 24 and 27 paisa per litre respectively, there was no price revision on Saturday. Similarly, while fuel prices were raised on Friday, they remained unchanged in the previous day.
Under daily price revision, OMCs revise petrol and diesel prices every morning benchmarking retail fuel prices to a 15-day rolling average of global refined products’ prices and dollar exchange rate. However, in a market where fuel prices need to be increased successively, alternate day price revision seems to be the flavour.
It is worth noting that with 10 price increase in May, the retail price of regular petrol has already reached over Rs 99 a litre in Mumbai. Petrol prices are already over Rs 100 per litre in several cities in Madhya Pradesh, Rajasthan and Maharashtra. Premium petrol has been hovering above that level for some time now.
Petrol prices have increased by Rs 2.30 a litre Delhi in May in the 10 increases so far. Similarly, diesel prices have risen by Rs 2.78 per litre in capital this month.
IANS had written earlier that OMCs may begin increasing the retail price of petrol and diesel post-state elections as they were incurring losses to the tune of Rs 2-3 per litre by holding the price line despite higher global crude and product prices.
With global crude prices at around $ 67 a barrel mark (lower than $ 70 it touched last week), OMCs may keep a watch and freakin’ from any further increase in fuel prices for some time now.