Petrol, Diesel Rates On Freeze As Crude Oil Prices Range-Bound, Indian Oil Says
The Indian Oil Corp. logo is displayed on a petrol gas pump. (Photographer: Vivek Prakash/Bloomberg)

Petrol, Diesel Rates On Freeze As Crude Oil Prices Range-Bound, Indian Oil Says

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Petrol and diesel prices haven’t been revised in at least a month because international crude oil prices have remained range-bound, Indian Oil Corp. Ltd. said on Friday.

While petrol prices haven’t changed since Sep. 22, diesel rates are static since Oct. 2.

“Crude oil has not seen any drastic movement,” Indian Oil Chairman Shrikant Madhav Vaidya told reporters in New Delhi, after announcement of the state-run oil refiner’s September quarter results. "Crude oil has traded in $39-42 per barrel range in recent weeks.”

The basket of crude oil that India buys has averaged $40 per barrel in October as against $41.35 in the previous month. According to Vaidya, this range-bound movement does not warrant a change in retail rates.

Petrol and diesel prices are revised daily in India on the basis of change in benchmark crude oil prices and the foreign exchange rate. Petrol in Delhi currently costs Rs 81.06 per litre while diesel is priced at Rs 70.46.

Vaidya said the cracks—or difference between crude oil and product price—have been low, which is a matter of concern. Petrol and diesel cracks are around $2 per barrel as against $7.8 and $13.2 per barrel respectively last year, he said.

Substantial downward revision and stability in prices of essential petroleum products—petrol, diesel, liquified petroleum gas and kerosene—in the recent months have brought much-needed relief to the common man.

There has been no change in the selling price of LPG for domestic use since July.

Even in the case of subsidised kerosene being supplied through the public distribution system, the cumulative reduction in retail price has been substantial. In Mumbai, the price has been cut by Rs 12.73 per litre since Feb. 16.

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