Home / News / India /  Petrol, diesel prices kept unchanged for 3rd day today. 5 things to know

NEW DELHI : Even as crude oil rates remain well below the $30 mark, state-run fuel retailers chose not to cut petrol and diesel prices for the third day in a row. Fuel prices have been on a declining mode since February 27, dropping by a few paise on some days and remaining stagnant on other days.

In Delhi, a litre of petrol is priced at 69.59 per litre and diesel at 62.29 per litre today. In Mumbai, petrol is selling at 75.30 per litre and diesel at 65.21 per litre. In Chennai, a litre of petrol will cost 72.28 per litre whereas diesel is now priced at 65.71 per litre. In Bengaluru, petrol is now selling at 71.97 and diesel at 64.41. In Hyderabad, petrol pumps are charging 73.97 for petrol and 67.82 for diesel. If you are in Gurgaon, you will have to shell out 70.21 for petrol and 62.08 for diesel.

5 things to know about petrol, diesel prices:

1) Petrol and diesel prices are directly dependent on the international market as India imports over 80% of its crude oil requirements. State-run fuel retailers take into account a complex formula comprising a fortnightly average of international benchmark rates, price of Indian basket of crude oil as well as the US dollar-rupee exchange rate. Fuel rates are reviewed everyday at 6 am.

2) Petrol and diesel prices have been cut by more than 6 a litre each since January 11 when rates touched this year's highest level. The rates are now at its lowest range since the last 8-9 months.

3) Despite a consistent decline in petrol and diesel rates, fuel demand has decline by 11% in the first two weeks of March due to the coronavirus pandemic, according to a report.

4) Brent crude was up $2.10, or 8%, at $26.98 a barrel this morning after tumbling 13% yesterday. Crude oil had hit an 18-year low rate as several countries accelerated lockdowns to counter the coronavirus pandemic.

5) Rating agency CRISIL expects crude price average of $35-40 per barrel in 2020, with downside risks. If the spread of Covid-19 is contained, or moderates over the next 2-3 months, average crude prices could range $35-40 per barrel in 2020, with risks tilted to the downside. However, the impact on prices will depend on the extent of near-term supply increases from Saudi Arabia and Russia, CRISIL said.

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