Petrol, Diesel Prices: After 16 Straight days of Surge, Oil rates slightly go down

After a continuous price surge in petrol and diesel for 16 days, the oil prices have marginally gone down as per the Indian oil Corp website. Earlier today, the state-owned oil companies announced a reduction of petrol prices by 60 Paise and that of diesel by 56 Paise. However, within hours, the prices were revised with a cut of just 1 Paisa a liter.

A senior official from India Oil Corporation clarified that the reduction was supposed to be just 1 Paisa but due to a clerical error, the website was showing the prices of May 25 as for today’s prices. The reduction in the prices by 1 Paisa was announced after the Organization of the Petroleum Exporting Countries (OPEC) and Russia decided to ease the crude oil supplies.

Currently, in New Delhi, Petrol is rated at INR 78.42 per liter while Diesel is available at INR 69.30. It’s important to note that fuel prices vary from one state to another due to the inclusion of local taxes.

The fuel prices have reached a record price in India which has led to the demand of duty cuts but the government is insisting on proposing a “long-term solution” to the problem. In a move to find such a solution, the oil Ministry headed by Dharmendra Pradhan gave a nod to the Indian Commodity Exchange (ICEX) to launch futures on petrol and diesel.

Talking about the last 16 days, the oil companies have raised the prices of petrol by INR 3.80 per liter and that of diesel by INR 3.38 per litre. The global oil prices saw a surge of more than 80 Dollars per barrel due to a combination of factors like President Donald Trump pulling out of Iran Nuclear Deal, Opec and Russia cutting supplies, reduced production in Venezuela and other matters of geopolitical tensions.

Apparently, India has no role in the global oil pricing which indirectly affects the fuel prices here. As a result, the price cut may take a significant amount of time.

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