New Delhi: Auto fuel prices in the country have maintained stability amidst volatility in global oil prices over rise in demand and concerns on production.
The oil marketing companies (OMCs) on Tuesday kept pump prices of petrol and diesel unchanged. This was the ninth consecutive day of no revision. OMCs decided to wait and watch the global oil situation before making further changes.
Accordingly, auto fuel prices on Tuesday remained unchanged. They were Rs 101.19 and Rs 88.62 per litre in Delhi, as per the Indian Oil Corporation.
In Mumbai, the petrol price is stable at Rs 107.26 per litre. The diesel rate also remains unchanged at Rs 96.19 a litre.
Across the country as well, auto fuel prices remained static on Tuesday. Their retail rates varied depending on the level of local taxes in a particular state.
The pricing formula is adopted by oil companies. Rates of petrol and diesel are reviewed and revised by them on a daily basis.
The new prices becomes effective from morning at 6 a.m.
The daily review and revision of prices is based on the average price of benchmark fuel in the international market in the preceding 15-days, and foreign exchange rates.
But, the fluctuations in global oil prices have prevented OMCs to follow this formula in totality. Revisions are now being made with longer gaps.
This has also prevented companies from increasing fuel prices whenever there is a mismatch between globally arrived and pump prices of fuel.
Fuel consumers can expect fuel prices to remain unchanged or get some relief by way of cut in days ahead as global oil is expected to remain soft.
Oil cartel OPEC and its allies have agreed to gradually raise production levels that should prevent upward price movement. The concerns on demand due to the pandemic is also affecting oil prices.
After touching $74 a barrel mark couple of weeks back and then falling, benchmark Brent crude is again back at around $74 a barrel.