New Delhi: Petrol and diesel price rise was on hold on Monday after the pump prices of both fuels rose simultaneously for four consecutive days taking up its retail rates by over Rs 1 per litre.
Benchmark crude prices have settled at $ 79 a barrel now. This is after shooting over a three-year high level of $ 80 a barrel early last week. This has given some room to OMCs to halt fuel price rise.
Diesel is at Rs 90.77 per litre while petrol maintains its priceline at Rs 102.39 a litre in Delhi.
Petrol prices had been stable since September 5. But oil companies finally raised the pump prices last week on Tuesday given a spurt in the product prices lately. It has now followed diesel with regular hikes in prices for the last four days before the pause on Monday.
On the other hand, Diesel price rise on eight of the last 11 days has raised its retail price by over Rs 2.15 per litre:
The OMCs had earlier preferred to maintain their watch prices on global oil situation before making any revision in rates. Therefore, Petrol prices did not change earlier for the last three weeks. But extreme volatility in global oil price movement has now pushed OMCs to effect the increase.
The wait and watch plan of OMCs had come to the relief of consumers. No revision came during a period when crude prices were on the rise. This would have necessitated about Rs 1 increase in the price of petrol and diesel.
In Mumbai, the petrol price is now at Rs 108.43 per litre while diesel rate is Rs 98.48 a litre.
Across the country as well petrol and diesel prices remained static on Monday. Their retail rates varied depending on the level of local taxes in the state.
Fuel prices in the country have been hovering at record levels. This is after 41 increases in its retail rates between April and July this year. It fell on a few occasions but largely remained stable.
On Monday, global benchmark Brent crude fell marginally to $ 79 a barrel after rising over $80 a barrel. Since September 5, when both petrol and diesel prices changed, 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.
OMCs review and revise rates of petrol and diesel on a daily basis. The new prices are effective from 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 and 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.