Fuel prices continue to be steady as global oil prices soften

Accordingly, petrol and diesel prices remained unchanged for the eighth consecutive day on Friday under the daily price revision mechanism followed by oil marketing companies.

So, the pump price of petrol in Delhi, which fell to Rs 103.97 a liter at 6 a.m. last week on Thursday from the previous day's level of Rs 110.04 a liter, remained at the same level on Friday. The diesel prices also remained unchanged in the capital at Rs 86.67 a liter.

In the financial capital Mumbai, petrol continued to be priced at Rs 109.98 a liter and diesel Rs 94.14 a liter.

Prices also remained static on Wednesday in Kolkata where the price of petrol was reduced by Rs 5.82 to Rs 104.67 per litre and that of diesel by Rs 11.77 to Rs 89.79 per litre last week.

Petrol price in Chennai also remained at Rs 101.40 per litre and diesel Rs 91.43 per litre.

Across the country as well, the price of the fuel largely remained unchanged on Friday but the retail rates varied depending on the level of local taxes.

After softening, the global crude prices have again touched the three-year high level of over $85 a barrel now.  The rise in the US inventory has pushed down crude prices a bit but the OPEC+ decision on the only a gradual increase in production in December could push up crude prices further. This could put pressure on oil companies to revise fuel prices upwards again.

Before price cuts and pause, diesel prices have increased 30 out of the last 49 days taking up its retail price by Rs 9.90 per litre in Delhi.

Petrol prices have also risen on 28 of the previous 45 days taking up its pump price by Rs 8.85 per litre.

Since January 1, 2021 petrol and diesel prices have risen by more than Rs 26 a litre before the duty cuts.

The excise duty cut by the Centre last week was the first such exercise since the onset of the Covid pandemic. In fact, the government had revised excise duty on petrol and diesel sharply in March and again in May last year to mobilize additional resources for Covid relief measures.

The excise duty was raised by Rs 13 and Rs 16 per liter on petrol and diesel between March 2020 and May 2020 and was standing high at Rs 31.8 on diesel and Rs 32.9 per liter on petrol before finally the center decided on duty cut.