Pause on petrol, diesel price hike for 3rd consecutive day

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SME Times News Bureau | 02 Jul, 2020
Fuel prices seems to have gone for a longer pause after rising in 22 of the past 26 days as oil marketing companies (OMC) kept the pump prices of petrol and diesel unchanged again on Thursday.

In the national capital, petrol price on Thursday stood at Rs 80.43 per litre and diesel at Rs 80.53 a litre, same level as Tuesday and Wednesday when the OMCs went for a pause and kept the prices unchanged.

Sources in public sector oil companies said that consumers could get relief from the regular price rise of the two petroleum products in the coming days as the pause for three days now could be replicated in several of the coming days due to softening of the global oil prices.

Also, the oil companies 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 in the national capital. In the other cities the magnitude of increase was similar. With global oil prices remaining around $ 40 a barrel, any fall in oil prices now may result in fuel consumers actually getting the benefit of a cut in the petrol and diesel prices.

But oil inventories in the US have fallen and that may again bump up the prices that could take crude closer to $ 45 a barrel mark. If this happens, and the price level is sustained for some time, fuel price could rise further in India.