New Delhi: Auto fuel prices in the country have maintained stability amid volatility in global oil prices, but the oil marketing companies on Sunday increased the diesel price marginally while maintaining stability in petrol prices.
Accordingly, diesel prices increased by 25 paise per litre in the national capital to Rs 89.07 per litre on Sunday. Petrol price remained unchanged for the 21th consecutive day, according to Indian Oil Corporation, country’s largest fuel retailer.
The OMC’s raised Diesel price on Friday as well by 20 paise per litre. Oil marketing company sources said this was based on the global price movement of the fuel.
OMCs have preferred to maintain their watch prices on global oil situation before making any revision in prices.
The wait and watch plan of OMCs has come to the relief of consumers. No revision has come during a period when crude prices were on the rise. This was over a shortfall in the US production and inventories and a pick up in demand. This would have necessitated about Rs 1 increase in price of petrol and diesel.
In Mumbai, the petrol price was stable at Rs 107.26 per litre. Mumbai rate for diesel rate increased to about Rs 96.68 a litre.
Across the country as well petrol price remained static on Sunday while diesel price increased marginally.
Fuel prices have been hovering at record levels. 41 increases in its retail rate took place since April this year. It fell on a few occasions but largely remained stable.
On Sunday, global benchmark Brent crude rose over $78 a barrel. Oil rates are up 2 per cent for the week and this is the fifth weekly gain. Since September 5, the price of petrol and diesel in the international market is higher by around $6-7 per barrel as compared to average prices during August.
Under the pricing formula adopted by oil companies, the OMC’s review and revise the rates of petrol and diesel on a daily basis. The new prices become 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 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 price of fuel.