Domestic fuel prices were unchanged on Monday as global crude oil rates kept rising as demand sentiment improves. State-run oil marketing companies (OMCs) had last reduced fuel prices early last week, following which there has been a steady rise in international crude oil prices.
The price of benchmark Brent crude oil has increased to nearly $73 per barrel after a weak run for a couple of weeks. Global oil prices increased after a power hurricane ploughed through the Gulf of Mexico, forcing shutdowns of hundreds of offshore oil platforms.
The rise in global oil prices has created a situation where OMCs may not be able to reduce domestic fuel rates. On the contrary, they may be forced to hike prices if global oil rates rise further.
Petrol and diesel prices remain on the higher side despite recent cuts by OMCs. In New Delhi, petrol remains over Rs 101 per litre while it costs over Rs 107 per litre in Mumbai. It is retailing at over Rs 101 per litre in Kolkata and above Rs 99 in Chennai.
There are many other cities where a litre of petrol costs more than Rs 100. Meanwhile, diesel is retailing at Rs 88.92 per litre in the national capital and Rs 96.48 per litre in Mumbai. The price in Kolkata is nearly Rs 92 per litre and over Rs 93 per litre in Chennai.
Domestic fuel prices were predicted to come down earlier this month due to a fall in global oil prices. However, there has been a sudden change in the movement of global oil prices, which have gained despite hesitation.
In such a scenario, there is no possibility of a reduction in fuel prices in the country as the government has already made it clear that it will not cut taxes levied on petrol and diesel.
Petrol, diesel prices in major Indian cities:
PETROL (PER LITRE)
DIESEL (PER LITRE)