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Despite falling crude oil prices, petrol crosses 100 in Delhi and 115 in Mumbai

Petrol and diesel prices have increased for the seventh time after the elections. Today i.e. on Tuesday, after this increase, petrol in Delhi and diesel in Rajasthan has crossed 100. After the increase of 80 paise per liter in petrol prices, the price of petrol in Delhi has crossed Rs 100 per liter. At the same time, the price of diesel was increased by 70 paise per liter on Tuesday. Petrol in Mumbai has become Rs 115.04 and diesel is Rs 99.25. Petrol in Kolkata has reached Rs 109.68 and diesel at Rs 94.62.

On 2 November 2021, petrol in Delhi reached Rs 110.04 per liter and diesel at Rs 98.42. These prices had reached an all-time high. Due to this, the central government was forced to reduce the excise duty on petrol and diesel and relief was given to consumers by Rs 5 per liter on petrol and Rs 10 per liter on diesel.

After this many states also reduced the Value Added Tax (VAT). Almost a month later, the Delhi government on December 2 reduced VAT on petrol to Rs 8.52 per liter, bringing down the price of petrol at the pump to below Rs 100. Since then, petrol in Delhi was Rs 95.41 per liter and diesel Rs 86.67 per liter and this rate remained till March 21 after the assembly elections.

Brent below $110 a barrel on Tuesday

Indian Oil, Bharat Petroleum, Hindustan Petroleum and Oil Ministry did not respond to an emailed query on the need to raise auto fuel rates, though their average cost of crude imports have come down drastically since Friday. Benchmark Brent crude, which had climbed $120.65 a barrel on Friday, fell by $8.17 to $112.48 on Monday. The downward trend continued the next day as well. On Tuesday, Brent fell below $110 a barrel during intraday trade.

India imports 85% of crude oil. Its average import cost has also seen a significant drop due to demand concerns due to the rise of the corona virus in China and reports of a lockdown in Shanghai. The price of Indian basket of crude oil declined by Rs 414.29 per barrel or 4.61% to Rs 8,572.06 per barrel on Monday from Rs 8,986.35 on Thursday, official data showed.

Companies recovering revenue loss

Oil marketing companies may not be able to pass on the benefits of the fall in crude oil prices to customers immediately, as they are recovering past revenue losses. Two experts, requesting anonymity, said state-run fuel marketers and the oil ministry did not respond to a query on the matter.

Public sector oil companies control about 90% of the fuel retail market. He had put on hold the daily change in petrol and diesel rates for 137 days from November 4 to coincide with assembly elections in five states, including Uttar Pradesh. During the freeze, international oil prices peaked at $139.13 a barrel on March 7, the last day of voting. The election results were declared on 10 March and fuel prices started rising from 22 March.

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