Auto fuel price rise checked for second consecutive day

As the global oil market remains flat for past few days, consumers in India have been spared a price rise in auto fuels for the second consecutive day.

Oil companies kept petrol and diesel prices unchanged on Tuesday taking global cues where benchmark crude oil prices have remained static around $43 a barrel for past few days now.

Consumers were spared any further rise in fuel prices with oil marketing companies deciding keep the pump prices of both petrol and diesel unchanged on Monday.

In Delhi, diesel continues to be priced at Rs 81.94 a litre while petrol’s steady run continues for 28 straight days at Rs 80.43 a litre.

While the price rise had gone for a pause now, sources in oil companies indicated that some price rise could be expected this week as well but it would be marginal considering international price movements. Any reduction in petrol and diesel prices at this juncture looks remote and would depend on oil prices falling consistently from the current levels and hold the trend for few days.

Assuming a steady rupee, every dollar per barrel fall in crude prices could result in about 40 paisa per litre decrease in petrol and diesel prices and vice versa.

Oil companies resumed the dynamic pricing system for daily revision of the two auto fuels from June 7 after keeping the price unchanged for around 82 days during the lockdown. Since then, while petrol prices have risen by Rs 9.17 a litre, diesel prices have risen by Rs 12.55 a litre in the capital.