Indian Standard Crude Oil at 10-year high, no change in petrol and diesel prices

Indian Standard Crude Oil at 10-year high

The price of standard crude oil bought by India has reached a decade high of $ 121 per barrel. But despite this, the prices of petrol and diesel across the country have remained stable for 21 consecutive days.

The price of standard crude oil purchased by India has reached a decade high of $ 121 per barrel. But despite this, across the country Petrol and Diesel Prices (Petrol and Diesel Price) Has remained stable for 21 consecutive days. According to the data of Petroleum Planning and Analysis Cell (PPAC), Indian standard crude oil reached $ 121.28 per barrel on June 9. Earlier this level of price was seen in the month of February/March of 2012. According to PPAC, the Indian crude oil standard price between February 25 and March 29 averaged $ 111.86 per barrel, immediately after the Russo-Ukraine war. Between March 30 and April 27, it averaged $103.44 per barrel.

Prices reach 13-week high on strong demand

The price of crude oil in the international market reached a 13-week high on Thursday due to strong demand from major customers like America. However, it registered a decline on Friday. Brent crude futures for August fell 81 cents ($0.81) to $122.26 a barrel. US West Tex Intermediate crude fell 79 cents to $120.72 a barrel in July.

Despite high crude oil prices, companies did not increase prices

Despite the fluctuations in oil prices, retail prices in the country have remained stable. State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have to fix cost-wise prices each day. But these companies have been keeping the prices of oil sold at petrol pumps lower than the cost since November 2021.

India imports 85% of its oil consumption

India meets 85 percent of its total oil requirements through imports. In such a situation, the retail price of fuel is kept according to the standard price in the international market. Industry sources said the rates at local petrol pumps are as per the norm of $85 per barrel. Oil companies have not raised prices because they are helping the government’s efforts to control inflation. Let us inform that retail inflation reached an eight-month high of 7.8 percent in April.

The increase in the price of fuel, especially diesel, has a huge impact on inflation. This increases the transportation cost. As a result, the prices of all essential goods including fruits and vegetables increase. Sources said that the industry is selling petrol at a loss of around Rs 18 per liter and diesel at Rs 21 per litre.

Private companies selling oil by Rs 3 costlier than government companies

While public sector oil marketing companies have continued to operate despite losses, private sector retail units such as Reliance-BP and Naira Energy have limited operations to cover losses. At some places, Naira is selling fuel at Rs 3 a liter more than the public sector units. Petrol in Delhi is currently priced at Rs 96.72 a liter and diesel Rs 89.62 a liter.

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