Business Update : Petrol, diesel prices remain static 3 days in a row

New Delhi, Jan 17 : Petrol and diesel prices remained unchanged on Sunday after oil marketing companies decided to wait and watch the global oil price movement before taking the next course of action.

Accordingly, in the national capital, petrol continued to be sold at the new record high level of Rs 84.70 a litre while diesel prices remained at Rs 74.88 per litre.

Across the country as well pump price of petrol and diesel remained static on Sunday.

Auto fuel price rise was on hold for the last five days after petrol and diesel prices had increased on two successive days last week on Wednesday and Thursday taking gasoline to record high levels in Delhi while keeping its prices very close to record high levels in other metro cities. It again rose Wednesday and Thursday by 25 paise per litre each before price rise has again gone in for a pause since Friday.

The OMCs ran out of patience on Wednesday as global crude prices have risen sharply lately taking benchmark Brent crude price to over $57 a barrel now and rising. The rise is primarily on account of Saudi Arabia’s decision on unilateral production cuts to balance oil prices on pandemic affected demand reduction in an oversupplied market.

At Rs 84.70 a litre in Delhi, petrol price has breached the highest level in the national capital after October 4, 2018, when the rate had risen to Rs 84 a litre.

The OMCs’ patience of holding back fuel prices was broken last week on Wednesday when they increased the retail price of petrol and diesel for the first time this year after over a month-long pause.

Petrol price was very close to breaching the all-time high level of Rs 84 a litre (reached on October 4, 2018) when it touched Rs 83.71 a litre on December 7, 2020. But the march had been halted ever since then with no price revision by the OMCs.

The Oil companies’ executives said that petrol and diesel prices may increase further in coming days as retail prices may have to be balanced in line with the global developments to prevent OMCs from making losses on sale of auto fuels.

IANS

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