In a big development, State-owned Oil marketing companies slashed diesel prices in the metros. The petrol prices were left untouched by the firms. As per the notification from the Indian Oil Corporation, Diesel price is Rs 73.16 per litre in Delhi from Monday. On Sunday, the diesel prices were Rs 73.27 with a net rate cut of just 11 paise. Petrol is retailed at Rs 82.08 per litre. In Maharashtra’s capital Mumbai, diesel rate is down by 12 paise with the new rate being Rs 79.69 per litre. The petrol prices remain unchanged at Rs 88.73 litre.
The diesel will retail at Rs 76.66 per litre and Rs 78.48 per litre, respectively, in Kolkata and Chennai. Petrol rates in Kolkata and Chennai remained the same at Rs 83.57 a litre and Rs 85.04 a litre, respectively. The state-run oil marketing companies (OMC) in India take daily stock of the fuel prices. The major OMC are the Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. The fuel revisions come into effect from 6 AM onwards in India.
If the readers had observed at the continuous fuel rate changes, only fuel prices were hiked by the oil companies since March 16. There wasn’t even a bare minimum in the fuel price reduction in the country. At the onset of the pandemic globally, the crude prices crashed from $50 per barrel to S16 at one time in mid-April. Despite the crash in international crude prices, the central and state governments increased the excise rate and Value Added Taxes. The government took the step while the various Oil Marketing companies kept the price unchanged. The decision to increase the rates was to fill up the government coffers.
As the crude prices began to climb higher and now reaching $43.40 per barrel, the OMCs are taking the step to raise the petrol and diesel prices. As per the industry information, fuel retail prices in India are unregulated and linked to the various international standards. The prices are normally revised on a 15-day course.