Petrol, diesel prices choose pause, relief likely ahead
Fuel prices have gone for an interruption after rising on 22 of the past 24 days as oil marketing companies (OMC) kept the pump prices of petrol and diesel unchanged on Tuesday.
In the capital , petrol price on Tuesday stood at Rs 80.43 per litre and diesel at Rs 80.53 a litre, same level as Monday when the OMCs had increased the value of the two fuels by five paise and 14 paise respectively.
Sources publicly sector oil companies said that buyers could get relief from the regular price rise of the 2 petroleum products in coming days because the pause on Tuesday might be replicated in several of the approaching days thanks to softening of worldwide oil prices.
Also, the businesses have covered most of the shortfall arising when for 82 continuous days (from March 14 to June 6) petrol and diesel prices remained unchanged while government substantially raised taxes on the products.
Starting from June 7, petrol price has increased by Rs 9.17 and diesel by Rs 11.14 within the capital . within the other cities the magnitude of increase was similar. For the last six to seven days, the quantum of daily increase has fallen from 60 paise per litre to but 20 paise per litre. With global oil prices remaining around $ 40 a barrel, any fall in oil prices now may end in fuel consumers actually getting the advantage of a cut on petrol and diesel prices.
In a historic development, the worth of diesel surged above that of petrol within the capital during this era . It continues to stay higher albeit on Saturday the quantum of petrol price hike was above that of diesel.
Officials within the oil marketing companies said that it’s hard to predict which of the 2 fuels are going to be priced higher within the capital because the gap between the 2 is nearly negligible. But petrol prices have shown more volatility in international markets which will take it ahead once more in coming days.
Apart from Delhi, the retail prices of petrol and diesel have followed the normal path in other metros with petrol being priced at a premium of between Rs five and eight per litre. The difference between the auto fuel prices in Delhi and other metros is due to the taxation structure.
While both petrol and diesel are at similar levels of taxes (state and Centre) in Delhi, it’s higher for petrol in many other Indian cities.
Globally diesel has priced a tad above petrol. In India too, the bottom price of diesel is slightly above petrol, but taxation at the Central and state levels changed the complexion of retail prices.