Petrol, diesel prices go for pause, relief likely ahead

Gasoline and diesel prices are going to break, relief is probably imminent

Fuel prices went on hiatus after rising 22 in the past 24 days as oil marketing companies (OMCs) on Tuesday, June 30, kept prices of gas and diesel pumps unchanged.

In the national capital, the price of gasoline on Tuesday was 80.43 liters per liter, and diesel 80.53 liters for Rs, the same level as on Monday, when OMCs raised the price of two fuels by five and 14 per axle, respectively.

Reuters

Sources in public sector oil companies said consumers could get relief from the regular rise in prices of the two petroleum products in the coming days, as Tuesday’s break could be repeated in the next few days due to easing global oil prices.

Also, the companies covered most of the shortcomings that arose when gasoline and diesel prices remained unchanged for 82 days (March 14 to June 6), while the government significantly increased product taxes.

Since June 7, the price of gasoline in the national capital has increased by 9.17 dinars, and diesel by 11.14 dinars. In other cities, the increase was similar. For the last six to seven days, the quantum daily increase has dropped from 60 pauses per liter to less than 20 pauses per liter. With global oil prices remaining around $ 40 a barrel, any drop in oil prices can now result in fuel consumers actually benefiting from lower gasoline and diesel prices.

The price of diesel has risen above gasoline

In historical development, diesel prices rose above gasoline in the capital during this period. It still remains higher even though the quantum price increase of gasoline was higher than diesel on Saturday.

Officials at oil marketing companies said it was difficult to predict which of the two fuels would be more expensive in the national capital, as the gap between the two is almost negligible. But gasoline prices have shown more volatility in international markets that could take it back ahead in the coming days.

Indian fuel prices

An employee refueling a public bus at a gas station in Calcutta, August 13, 2012. Expect a popular reaction if the Indian government raises diesel prices to stop the outflow of subsidies to its finances – not just from the millions of poor who need cheap fuel, but from the growing the number of wealthy and businesses that do not. Picture taken on August 13, 2012.Reuters

Apart from Delhi, retail prices of petrol and diesel follow the traditional path in other metros, and petrol is priced at between five and eight hands per liter. The difference between the prices of automotive fuels in Delhi and other metros is due to the tax structure.

Although petrol and diesel in Delhi are at similar tax levels (state and center), in many other Indian cities it is higher for petrol.

From a diesel point of view, diesel is priced higher than gasoline. In India, too, the basic price of diesel is slightly higher than gasoline, but taxation at the central and state levels has changed the retail price complex.

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