OIL & GAS

Price crash brings no relief: Oil companies keep fuel prices unchanged for 40 days

This is one reform initiative of the government that has not yielded the desired results on ground. A collapse in global crude oil prices was widely believed to provide relief to consumers by way of sharply lower retail price of petrol and diesel. But the reality has turned out to be something else.

The auto fuels today maintain almost the same price levels at pumps that was existing on March 14, when government raised the excise duty on petrol and diesel by Rs 3 per litre on the back of a single day more than 30 per cent fall in crude to $35 a barrel.

Since then (March 14) , crude prices has fallen by another 40-50 per cent with Indian baskof crude hovering around $20 a barrel now, but retail prices of petrol and diesel has not fallen to provide relief to consumers in time of Covid-19 outbreak.

On March 14, when crude prices were around $35 a barrel, even after factoring in the higher cost, petrol prices stood at Rs 69.87 a litre and diesel Rs 62.58 in Delhi. On Saturday, retail price of petrol is almost at same level at Rs 69.59 a litre and diesel at Rs 62.29 a litre in Delhi, when Indian basket of crude is hovering around $20 a barrel.

In fact, oil companies have not revised petrol and diesel prices since March 16 in complete contravention of policy reforms and daily price revision mechanism where petrol and diesel retail prices changed every day.

Source
ET News
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