Petrol, diesel prices go for pause, relief likely ahead

Petrol, diesel prices are non-stop, relief is possible

On Tuesday, June 30, oil marketing companies (OMCs) kept petrol and diesel prices unchanged, raising fuel prices on the 22nd of the last 24 days.

In the national capital, petrol was priced at Rs 60.43 per liter and diesel at Rs 80.53 per liter on Tuesday, while OMCs on Monday hiked the prices of two fuels by five paise and 14 paise respectively.

Reuters

Sources in the public sector oil companies said that Tuesday’s break could be reflected in the next few days as global oil prices softened, so consumers could be relieved of the regular rise in prices of two petroleum products in the coming days.

Also, the companies have met most of the shortfalls while petrol and diesel prices remained unchanged for two consecutive days (March 14 to June), while the government has substantially increased taxes on goods.

From June, the price of petrol in the national capital has gone up by Rs 9.1 and diesel by Rs 11.14. In other cities, the growth rate was the same. Over the last six to seven days, the daily increase has come down from 20 paise per liter to 20 paise per liter. With global oil prices hovering around ড 40 a barrel, any drop in oil prices could actually lead to a drop in petrol and diesel prices for fuel consumers.

The price of diesel has gone up as compared to petrol

In a historic development, the price of digital has risen more than petrol in the national capital during this period. On Saturday, the rise in petrol prices was higher than that of diesel, but it continued even higher.

Oil marketing officials said the gap between the two was almost negligible, making it difficult to predict which of the two fuels would be more expensive in the national capital, but petrol prices in international markets showed more volatility that could push it further in the coming days.

India fuel prices

An employee loads diesel into a public bus at a fuel station in Kolkata on August 13, 2012. If the Indian government raises the price of diesel to stop subsidizing its finances, expect a popular response – only a few million poor, a growing number who do not need cheap fuel. And from the business of those who do not. Photo August 13th, 2012.Reuters

Apart from Delhi, retail prices of petrol and diesel have followed the path of petrol in other metros with petrol being priced at Rs five to Rs eight per liter. The difference between the prices of auto fuel in Delhi and other metros is the tax structure.

While both petrol and diesel are at the same tax level (state and center) in Delhi, it is higher than petrol in many other cities in India.

The price of diesel worldwide is one rupee more than petrol. In India too, the basic price of diesel is slightly higher than that of petrol, but the imposition of taxes at the central and state levels has resulted in changes in retail prices.

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