Petrol and diesel prices remain unchanged on Tuesday despite a fall in crude oil prices in the international market amid coronavirus outbreak.
According to the official website of Indian Oil Corporation, on Tuesday, petrol now costs Rs 71.26 per litre in Delhi, Rs 76.31 per litre in Mumbai. Similarly, diesel costs Rs 69.59 a litre in Delhi, Rs 66.21 a litre in Mumbai. In Kolkata, a litre of petrol will cost Rs 73.30 per litre whereas diesel is now priced at Rs 65.62 per litre. In Chennai, a litre of petrol will cost Rs 72.28 per litre whereas diesel is now priced at Rs 65.71 per litre.
Petrol price in the national capital was hiked by Rs 1.67 a litre on May 5 and diesel by a steep Rs 7.10 per litre after the Delhi government raised local sales tax or value-added tax (VAT) on the two fuels. On the other hand, the Assam government on April 22 has increased the Value Added Tax (VAT) on diesel, petrol, and other motor spirits.
Amid COVID-19 disruption fuel consumers could further face the heat from rising fuel prices with public sector oil marketing companies (OMCs) bracing up to restart daily price revision of the retail price of petrol and diesel later this month.
Sources in OMCs told PTI that the daily price revision of auto fuels may start again once the lockdown is lifted or more relaxations are announced by the government later in the month. However, no decision has been taken on it now. If this happens, petrol and diesel prices can start rising again every day as global oil market has also studied gaining more than 50 per cent over last months prices to around USD 30 a barrel now.
"Petrol and diesel prices have not been revised since March 16 (it went up in Delhi on May 5 only after state government raised VAT) and that gave cushion to the government to steeply raise excise duty on the two products without impacting their retail prices. But that cushion is no longer there now and once daily price revision plan starts, auto fuel could see steep rise over the course of few days," said an official of a public sector OMC asking not to be named told PTI.
Crude oil prices on Monday rose Rs 30 to Rs 1,867 per barrel as participants widened their positions on firm spot demand. On the Multi Commodity Exchange, crude oil for delivery in May traded higher by Rs 30, or 1.63 per cent, to Rs 1,867 per barrel in 7,857 lots.
Crude oil for June delivery was up by Rs 27, or 1.37 per cent, at Rs 1,992 per barrel with an open interest of 971 lots. Globally, West Texas Intermediate crude oil was trading lower by 0.81 per cent at USD 24.54 per barrel and Brent crude fell 1.03 per cent to USD 30.65 per barrel.
