New Delhi: Despite a slump in the global crude oil market, state-run oil companies chose not to decrease petrol and diesel prices in India once again today. Since Monday, crude oil prices have fallen by about 6% but fuel prices have not been touched during the past three days. A litre of petrol today costs ₹ 70.63 in Delhi, ₹ 76.25 in Mumbai, ₹ 71.20 in Bengaluru, ₹ 73.29 in Chennai and ₹ 72.71 in Kolkata.
Diesel, on the other hand, costs ₹ 64.54 in Delhi, ₹ 67.55 in Mumbai, ₹ 64.90 in Bengaluru, ₹ 68.14 in Chennai and ₹ 66.30 in Kolkata. The crude oil market has been volatile in the last few days. Oil prices fell 7% on Tuesday, rose about 2% on Wednesday and resumed their slide once again today. The price of Crude oil, on which the prices of petrol and diesel are directly dependent, has declined about 6% this week. On Monday, the price of petrol in Delhi was ₹ 70.53 and has dropped by only 10 paise since then.
Oil retailers use a complex formula comprising a 15-day average of crude oil price and the exchange rate of the rupee against the US dollar to compute the daily retail price of petrol and diesel.
International benchmark Brent crude futures were down 1.2%, at $56.58 per barrel amid worries about oversupply and the outlook for the global economy.
On Tuesday, Brent had tumbled to a session low of $55.89 a barrel, a bottom last reached in October 2017. WTI sank to $45.79, the weakest since August 2017.
Brent and WTI have fallen more than 30% since the beginning of October due to a supply glut. However, during the same period, petrol and diesel prices are down by only about 16%. The decline includes the effect of a cut in excise duty by the central government and a cut in sales tax or VAT by various state governments.