India’s crude oil basket has hit a decade high of $121 a barrel, but retail selling prices of petrol and diesel remain stable.
According to data available from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry, the Indian basket touched $121.28 on June 9, the same as it was seen in February and March 2012.
According to the PPAC, the Indian basket of crude oil averaged $111.86 a barrel between February 25 and March 29 – the period immediately following Russia’s invasion of Ukraine that caught fire.
Between March 30 and April 27, it averaged $103.44 per barrel.
International oil prices on Thursday closed near 13-week highs on strong demand from major buyers such as the US.
Although they cut some gains on Friday, Brent crude futures for August were down 81 cents to trade at $122.26 a barrel. US West Texas Intermediate crude for July was down 79 cents at $120.72 a barrel.
However, retail fuel rates in India have remained stable. (Also read: Petrol, diesel prices: Fuel prices unchanged in metros today)
State-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) are to adjust daily petrol and diesel prices to align with the cost, but they will continue to moderate from November 2021. are doing. Pump rates.
India is 85 per cent dependent on imports to meet its oil requirements and hence local pump rates are benchmarked against international prices.
Industry sources said local pump rates are benchmarked to a crude price of around $85 a barrel, but oil companies have not changed rates as they assist the government in trying to control inflation. , which is already ruling at an almost eight-year high of 7.8 percent. ,
Fuel prices, especially diesel, have a cascading effect on inflation as higher prices will lead to higher transportation costs, raising prices across the board, including essential commodities like vegetables.
Sources said the industry is selling petrol at a loss of Rs 18 per liter and diesel at Rs 21 per litre.
Petrol and diesel prices were last revised on April 6 to align with the cost and have been on a freeze since then. Last month, the rates were reduced after the government cut excise duty on petrol by Rs 8 per liter and on diesel by Rs 6.
Last week, Oil Minister Hardeep Singh Puri said oil companies are responsible corporate citizens and the government is not fixing the retail sale price.
Despite a jump in oil prices, three state fuel retailers first froze petrol and diesel rates for a record 137 days in early November 2021, when elections were held in five states, including Uttar Pradesh, and again in April. Gone in the gap. It is now 65 days.
While state-owned oil marketing companies (OMCs) have maintained retail operations despite losses, private sector retailers such as Reliance-BP and Nayara Energy have cut operations to cut losses. In some places, Naira is selling fuel at Rs 3 per liter as compared to the competition in the public sector.