As of Friday, the petrol and diesel prices in India were hiked by 0.17 rupees (in Indian currency) and 0.22 rupees respectively, making their per litre prices to INR 81.23 ($1.10 approx.) and INR 70.68 ($0.95 approx.) respectively in the national capital New Delhi. For both petrol and diesel, prices were revised on a daily basis at 6 am based on the global pricing.And holding the price revision for so long is quiet surprising.
Public sector oil marketing companies - Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd - revise rates of petrol and diesel daily based on benchmark worldwide oil price and foreign exchange rate.
According to notifications from Indian Oil Corporation, the prices of petrol were increased by 15-20 paise per litre, and those of diesel by 20-25 paisa per litre. At a time when globally prices change by the hour, in India it could be kept static for such a long period.
Oil prices rose about 1% on Friday, posting a third consecutive weekly rise, buoyed by successful COVID-19 vaccine trials though renewed lockdowns in several countries to limit the spread of the coronavirus capped gains.
However, oil companies have kept fuel prices static even when there was a need to revise it downwards last month.
Petrol and diesel prices today rose for the first time in almost two months. So, once again regular fuel price revision shall become the norm.
OMC sources said that the auto fuel hike may not end just yet and the price of the two petroleum products may increase gradually over the next week as well. Also, demand for oil as well as inventory levels which have gone down in major consuming nations has also led to the surge in global crude prices.
The benchmark Brent crude price is hovering close to $45 a barrel for some time now while the US WTI crude is also over $42 a barrel. This is to prevent OMCs from incurring losses on the sale of auto fuel.