Fuel prices maintain stability despite volatility in global oil market

New Delhi: Despite rising crude oil prices, auto fuel prices in the country have maintained stability. Pump prices of auto fuels petrol and diesel were left unchanged by oil marketing companies (OMCs) on Sunday for the 14th day in a row, as they chose to wait and see how the global oil situation developed before making any price changes.

Accordingly, the price of petrol and diesel remains unchanged at Rs 101.19 and Rs 88.62 per litre in Delhi, as per Indian Oil Corporation, the country's largest fuel retailer.

In Mumbai, the petrol price is stable at Rs 107.26 per litre on Sunday, while diesel rates also remain unchanged at Rs 96.19 a litre.

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

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

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

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

However, OMCs have been unable to fully implement this formula due to swings in global oil prices, and revisions are now being made with wider gaps.

As a result, firms have been restrained from raising fuel prices whenever there is a discrepancy between the global average and the pump price of fuel.

Meanwhile, Brent crude oil prices have risen to over $75 a barrel after briefly topping $74 a barrel a few weeks ago and then declining.