Consumers can cheer as oil marketing companies (OMC) mayactually bring down the retail prices of petrol and diesel in the coming weekahead of Diwali.
Oil sector experts said that with global oil prices underpressure from slowing demand in the second wave of Covid-19 pandemic sweepingseveral western countries, crude price could fall in coming days. If this holdson for a week or so, there could be positive gains for auto fuel consumers inIndia by way of a fall in retail price of petrol and diesel.
Global crude prices are already down over 5 per cent overthe week with oil now selling close to $40 a barrel from earlier levels of over$ 42 per barrel. But with lower oil demand and rising inventory, there is fearamong oil producing companies that crude prices may start falling again.
OMCs in India have been holding on to the retail price ofpetrol and diesel for close to a month now. Even on Tuesday, the price of twopetrol products remained unchanged. With this, petrol prices have now beenunchanged for over a month now while diesel prices were same for the 25thstraight day across the metros.
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Price of petrol in the national capital was at Rs 81.06 perlitre. In Mumbai, Chennai and Kolkata, the fuel was sold for Rs 87.74, Rs 84.14and Rs 82.59 per litre, respectively.
Diesel prices in Delhi, Mumbai, Chennai and Kolkata were atRs 70.46, Rs 76.86, Rs 75.95 and Rs 73.99, respectively.
But with fresh indications on global oil prices, domesticoil companies could revise the retail price downwards. However, their marginswould be protected as oil demand in the country had picked up latterly gettingover even the last years numbers.
Retail sales have picked up with the gradual reopening ofthe economic activities. First time since lockdown, diesel sale in the countryhas crossed over the pre-covid level with the country's most widely consumedfuel witnessing a nine per cent year-on-year growth in the first 15 days ofOctober.
The surge in demand after months of subdued sales is thedirect result of an increase in the transport activities ahead of the festivalseason as consumers move out to make those necessary purchases.