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Petrol, diesel prices remain unchanged for over a week

The concerns on demand due to the pandemic are also affecting oil prices.

IANS | New Delhi |

Auto fuel prices in the country have maintained stability amidst softening of global oil prices over rising in production and concerns on demand.

The oil marketing companies (OMCs) on Monday kept pump prices of auto fuels petrol and diesel unchanged, the eighth consecutive day of no revision, and decided to wait and watch the global oil situation before making further changes.

Accordingly, the prices of petrol and diesel remained unchanged at Rs 101.19 and Rs 88.62 per litre in Delhi, according to the Indian Oil Corporation, the country’s largest fuel retailer.

In Mumbai, the petrol price is stable at Rs 107.26 per litre on Monday, while the diesel rate also remains unchanged at Rs 96.19 a litre.

Across the country as well, petrol and diesel prices remained static on Monday but their retail rates varied depending on the level of local taxes in a particular state.

Under the pricing formula adopted by oil companies, rates of petrol and diesel are to be reviewed and revised on a daily basis.

The new prices become effective from the morning at 6 a.m.

The daily review and revision of prices are 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 there is a mismatch between globally arrived and pump prices of fuel.

Fuel consumers can expect prices to remain unchanged or get some relief by way of cut in days ahead as global oil is expected to remain soft.

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 are also affecting oil prices.

After touching the $74 a barrel mark last week, benchmark Brent crude is marginally lower now at around $73 a barrel.