Benchmark crude prices have settled at a tad lower level of $ 79 a barrel now after shooting over a three-year high level of $ 80 a barrel early last week. This has given some room to OMCs to halt fuel price rise.

 

With no change in fuel prices, diesel continues to be priced at Rs 90.77 per litre while petrol maintains its priceline at Rs 102.39 a litre in Delhi.

 

Petrol prices had maintained stability since September 5, but oil companies finally raised the pump prices last week on Tuesday given a spurt in the product prices lately. It has now followed diesel with regular hikes in prices for the last four days before the pause on Monday.

 

Diesel prices on the other hand has increased on eight of the last 11 days that has raised its retail price by over Rs 2.15 per litre:

 

The OMCs had earlier preferred to maintain their watch prices on global oil situation before making any revision in rates. This is the reason why the petrol prices were not revised earlier for the last three weeks. But extreme volatility in global oil price movement has now pushed OMCs to effect the increase.

 

The wait and watch plan of OMCs had come to the relief of consumers earlier as no revision came during a period when crude prices were on the rise over a shortfall in the US production and inventories and a pick up in demand. This would have necessitated about Rs 1 increase in the price of petrol and diesel.

 

In Mumbai, the petrol price is now at Rs 108.43 per litre while diesel rate is Rs 98.48 a litre.

 

Across the country as well petrol and diesel prices remained static on Monday, but their retail rates varied depending on the level of local taxes in the state.

 

Fuel prices in the country have been hovering at record levels on account of 41 increases in its retail rates between April and July this year. It fell on a few occasions but largely remained stable.

 

On Monday, global benchmark Brent crude fell marginally to $ 79 a barrel after rising over $80 a barrel. Since September 5, when both petrol and diesel prices were revised, the price of petrol and diesel in the international market is higher by around $6-7 per barrel as compared to average prices during August.

 

Under the pricing formula adopted by oil companies, rates of petrol and diesel are to be reviewed and revised by them on a daily basis. The new prices become effective from morning at 6 a.m.

 

The daily review and revision of prices is based on the average price of benchmark fuel in the international market in the preceding 15-days, and foreign exchange rates.

 

But, the fluctuations in global oil prices have prevented OMCs to follow this formula in totality and revisions are now being made with longer gaps. This has also prevented companies from increasing fuel prices whenever there is a mismatch between globally arrived and pump price of fuel.