NEW DELHI: State-run oil marketing companies cut diesel prices for the first time in nearly six months on Thursday even as petrol rates remained unchanged. While fuel prices have been steadily revised upwards over the course of the summer, since March 16, at no point did prices take a dip.
This, even as crude prices crashed in the wake of the pandemic, going from $60 per barrel at the end of January to as low as $16 in the middle of April. The governments at the Centre and states hiked excise duties and Value Added Tax (VAT) even as OMCs held prices unchanged after fuel demand crashed. But, once crude oil began rising again, currently trading at $43.40 per barrel, fuel prices have been increased to record highs to account for the higher duties.
Alternating sprees of prices hikes for petrol and diesel had led to the fuels retailing at Rs 88.73 per litre and Rs 80.11 per litre respectively in Mumbai as on September 2, 2020, Wednesday. On Thursday, however, OMCs revised diesel prices downwards by 16 paise a litre for the first time since March 16, but kept petrol rates unchanged.
Crude oil prices, having steadily traded at around $44-45 per barrel over the month of August, fell by 2.3 per cent on Thursday. Retail fuel prices are unregulated, supposed to be linked to international benchmarks and revised based on a 15-day rolling average, according to industry sources. However, since the pandemic struck, OMCs have departed from the policy, keeping rates unchanged even as crude prices hit rock bottom.
Petrol price remains unchanged at Rs 82 a littre
Petrol, which witnessed the second rally in rates beginning mid-August, was unchanged at Rs 82.08 a litre. Price went up by Rs 9.17 per litre between June 7 and June 29 before hitting a pause.