Retail prices of petrol and diesel remained unchanged on Tuesday after reaching lows last seen in January last year amid a collapse in global crude oil benchmark rates. The price of petrol in the national capital currently stands at Rs 69.75 per litre while diesel is priced at Rs 62.44 per litre.
The price freeze today follows an 18-day declining streak in fuel prices on the back of a slump in global crude and commodity prices. Automobile fuel prices have followed a downward trajectory since the start of the year with petrol and diesel prices falling in the range of 7-8 per cent since 1 January 2020.
According to an ICICI Securities report, net auto fuel margin of oil marketing companies (OMCs) remained high up to 16 March despite the companies absorbing the excise duty hike announced by the government earlier this week.
Price of Brent crude increased more than $1 on Tuesday and was trading at $30.51 per barrel during early hours as the recent collapse in oil prices encouraged bargain hunters to take advantage of the massive fall in prices.
While domestic fuel prices are not directly linked to global prices of crude oil, petrol and diesel prices typically trail global oil prices. Oil marketing companies fix the price of petrol and diesel at retail outlets based on a rolling average of the past 15 days of the benchmark prices of petrol and diesel in West Asia.
The fall in global oil and commodity prices has also resulted in a drop in the prices of Liquefied Petroleum Gas (LPG), Aviation Turbine Fuel (ATF) and auto LPG prices in India.