PETROL AND DIESEL PRICES REMAIN UNCHANGED DESPITE PRICE CUT UPTO 28%

PETROL AND DIESEL PRICES REMAIN UNCHANGED DESPITE PRICE CUT UPTO 28%

5-JULY-ENG 1

RAJIV NAYAN AGRAWAL

DELHI--------------------------Crude oil prices in the international market have dropped by approximately 28 percent over the last 40 days, yet there has been no relief in retail petrol and diesel prices in India. State-owned oil companies have not altered fuel prices since May 25, prompting common consumers to ask when they will finally benefit from cheaper crude oil.

On Friday, Brent crude was trading at around $71.74 per barrel and WTI at approximately $68.60 per barrel in the international market. Although prices saw minor fluctuations during the week, a significant decline in crude oil prices has been recorded over the past month and a half.

Analysts attribute the easing of global supply concerns to positive signals from US-Iran talks and the continued normal flow of oil supplies through the Strait of Hormuz. Meanwhile, crude oil prices remain under pressure due to demand in China failing to rise to expected levels.

Global availability remains adequate for now, driven by Saudi Arabia increasing oil supplies to Asian markets and the release of oil from strategic reserves. Consequently, several international agencies predict that oil price fluctuations will remain within a limited range in the near future.

Experts believe that petrol and diesel prices in India are not determined solely by crude oil costs; factors such as the rupee-dollar exchange rate, central and state taxes, transportation costs, marketing margins, and the pricing policies of oil companies also play a crucial role. This is why the benefits of a decline in international market prices do not immediately reach consumers.

However, market experts suggest that if crude oil prices remain at current levels for an extended period, oil companies might review prices in the coming days. No official announcement has been made regarding this so far.

Petrol (per litre)

• Delhi - ₹102.12

• Mumbai - ₹111.21

• Kolkata - ₹113.51

• Chennai - ₹108.01

Diesel (per litre)

• Delhi - ₹95.20

• Mumbai - ₹97.83

• Kolkata - ₹99.82

• Chennai - ₹99.66

The fact that domestic fuel prices remain unchanged despite a significant drop in crude oil prices is disappointing for consumers. If oil prices remain low in the global market and geopolitical conditions stay stable, the likelihood of a reduction in petrol and diesel prices could increase.

For now, the public is keeping a close watch on the next move by state-run oil companies and the central government.