Petrol and diesel prices remain unchanged for second consecutive day

Retail fuel prices remained unchanged for the second consecutive day on Sunday, with petrol selling at Rs 86.95 per litre in the national capital.

In Mumbai, Kolkata and Chennai, petrol was sold at Rs 93.49, Rs 89.39 and Rs 88.30 per litre respectively.

Diesel prices also remained unchanged on Sunday. Prices of the fuel in Delhi, Mumbai, Kolkata and Chennai were Rs 77.13, Rs 83.99, Rs 82.33 and Rs 80.71 respectively.

Petrol and diesel prices have largely been elevated amid reviving crude oil prices. The benchmark Brent crude oil is currently around $59 per barrel.

Though firm global crude and product price is the reason for the increase in retail price of petrol and diesel in past days, it is interesting to note that even though crude has been hovering just over $55 a barrel for a long time, OMCs had gone in for a pause in price of auto fuels on consecutive days.

Crude price have remained firm for last few weeks in wake of unilateral production cuts announced by Saudi Arabia and a pick-up in consumption in all major economies globally.

The last few increases in pump prices in petrol and diesel has taken its price to record levels across the country in all major metro cities and other towns. The last time the retail price of auto fuels were closer to current levels was on October 4, 2018 when crude prices had shot up at $80 a barrel.

The current price rise is largely on account of steep increase in central taxes on petrol and diesel and firm crude prices. The Budget has also imposed a new agriculture infrastructure and development cess.

Oil companies executives said that petrol and diesel prices may increase further in coming days as retail prices may have to be balanced in line with global developments to prevent OMCs from making losses on the sale of auto fuels.

--IANS

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