NEW DELHI : Petroleum Marketing Companies (OMC) have kept gasoline and diesel prices unchanged for four straight weeks now.
In the nation’s capital, gasoline is sold at ₹96.72 per litre, while diesel is priced at ₹89.62 per liter.
Retail prices were last revised on May 22, a day after the government announced excise duty cuts on petrol and diesel.
Domestic fuel prices have remained stable despite volatility in global crude prices. Oil prices, which have been well above $120 a barrel lately, fell more than 5% on Friday amid recession fears.
The August Brent contract on the Intercontinental Exchange closed at $113.12 a barrel on Friday, down 5.58% from its previous close. Similarly, the West Texas Intermediate July contract fell 6.83% to $109.56 a barrel.
Interest rate hikes by the US Federal Reserve and central banks of several major economies weighed on investor sentiment on Friday.
Ravindra Rao, head of commodities research at Kotak Securities, said demand concerns from monetary tightening by major central banks threatened to impact economic activity, driving prices down. petrol.
Volatility is expected to continue over the coming week.
In addition, the upsurge in covid cases in China and new sanctions imposed by the United States on Iranian petrochemical companies are expected to add to supply concerns and volatility.
High and volatile global oil prices are a major concern for India, as the country imports about 85% of its energy needs. High oil prices have been among the key factors behind high inflation in the country. Recent government data showed India’s wholesale price inflation for the month of May hit a 30-year high of 15.88%.
Based on these inflationary concerns, the Center announced on 21 May a reduction in excise duties on petrol and diesel in ₹8 and ₹6 per liter respectively.
