After 2 days of fall, fuel price revision on a pause

IANS File Photo
IANS File Photo

New Delhi, March 26 (IANS): Oil marketing companies on Friday went on pause mode and decided against revising petrol and diesel after cutting its retail rates in the previous two days.

Accordingly, the pump price of petrol and diesel remained at previous days level of Rs 90.78 and Rs 81.10 a litre respectively in the national capital.

Petrol and diesel prices fell by 39 paise and 37 paise per litre respectively in two consecutive days of revision on Wednesday and Thursday in wake global softening of oil prices. OMCs have decide to pause price revision as crude has again gained and climbed up to close to $63 a barrel from a lower $ 60 a barrel earlier.

Across the country as well the petrol and diesel prices remained static on Friday but its retail levels varied depending on the level of local levies in respective states.

In Mumbai, petrol continues to be priced at Rs 97.19 a litre and diesel at Rs 88.20 a litre. Premium petrol, however, continues to remain over Rs 100 a litre in the city as is the case with several other cities across the country.

The OMCs went on a price cut for the first time this year on Wednesday after keeping oil prices steady for the past 24 days.

Petrol and diesel prices were last revised upwards on February 27 and ever since then retail prices remained unchanged even though during the period crude jumped to over $70 a barrel only to start falling after touching close to $ 60 a barrel and is now slightly up at $ 63.5 a barrel. It was cut for the first time this year on March 24 and 25 before revision being put on hold again.

Sources said that oil companies took time to revise petrol and diesel prices downwards earlier as they were covering up for losses incurred on its sale when crude was high and retail prices remained static. Some indications suggest that there was a loss of Rs 4 and Rs 2 per litre on sale of diesel and petrol respectively earlier that had now been more or less covered.

The current reduction in retail prices has not helped in bringing down fuel prices that have crossed Rs 100 per litre (petrol) mark in several parts of the country and continues to remain above the levels even now.

Since the beginning of February crude has gained more than $7 per barrel that pushed OMCs to increase fuel prices on 14 occasions raising the prices by Rs 4.22 per litre for petrol and by Rs 4.34 a litre for diesel in Delhi.

The petrol and diesel prices have increased 26 times in 2021 with the two auto fuels increasing by Rs 7.46 and Rs 7.60 per litre respectively so far this year. This is for the first time it has fallen this year.

Officials in public sector oil companies said that retail prices may rise again if crude and product prices pick up but for now it will fall over the needy few days.