Diesel prices fall further, petrol holds steady

Oil marketing companies continued to pass the benefit of softening global oil and product prices to consumers by reducing the retail price of diesel further by 20 paise per litre in the national capital on Thursday.

This is one successive day when diesel prices have been cut across the country.

The companies, however, have kept petrol prices unchanged for the 33rd consecutive day as wait and watch continued to analyse the global oil market for some more time before any revision.

With the cut, diesel is now priced at Rs 89.47 and with no change in rates petrol continues to be sold for Rs 101.84 per litre in Delhi.

Across the country as well, diesel prices fell between 18-25 paise per litre while petrol remained at the same level prevailing for the last one month.

Global crude prices have now softened to below $ 70 a barrel after it swung in all directions in July starting with a low of $70 a barrel to quickly rise to over $ 77 a barrel, only to fall soon below $ 70 a barrel and crossing $ 75 a barrel later in the month.

The fall in global oil should have resulted in almost Rs 2 per litre reduction on retail price of fuel. However, OMCs still want to see market movements before making further cuts.

The pump price of auto fuels has been static since July 18.

In the city of Mumbai, where petrol prices crossed the Rs 100-mark for the first time ever on May 29, the fuel price is at Rs 107.83 per litre. Diesel price in the city is also close to Rs 97.04 a litre, the highest among metros.

Petrol prices in all metros have already crossed the Rs 100 per litre-mark. In Chennai, petrol is priced at Rs 99.47 a litre and in Kolkata Rs 102.08 a litre. Diesel is also priced at Rs 94.02 and Rs 92.57 per litre in both cities respectively. In Chennai, petrol prices fell by almost Rs 3 per litre on August 14 after the state government cut VAT on the fuel.

The long price pause for auto fuels has come after fuel prices increased for 41 days in the current financial year. The 41 increases have taken up petrol prices by Rs 11.44 per litre in Delhi. Similarly, diesel rates have increased by Rs 8.74 per litre in the national capital.

Prices of both auto fuels reduced only once in April by 16 and 14 paise per litre respectively. Diesel prices were also reduced by 16 paise per litre in Delhi on July 12 and again now on August 18 and August 19.

Since April 2020, petrol prices have increased by Rs 32.25 per litre from Rs 69.59 a litre to Rs 101.84 a litre now in Delhi. Similarly, diesel prices during the period have increased by Rs 27.18 per litre from Rs 62.29 to Rs 89.47 a litre in the national capital.