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12 September 2017
 |
| Petrol prices in the country (The Total Investment & Insurance Solutions) |
The
Indian basket of imported crude oils gained nearly $3.50 a barrel during last
week even as petrol prices in the country touched their highest levels 2014,
official data has showed. The Total
Investment & Insurance Solutions
Petrol price was hiked by 8 paise a litre and
diesel by 10 paise per litre, applicable from 6 a.m. on Tuesday. The Total Investment & Insurance
Solutions
Meanwhile, under the daily revision of fuel
prices, petrol in Mumbai on Tuesday cost Rs 79.48 a litre, breaching the level
it last touched in August 2014.
On
Tuesday, petrol per litre cost Rs 70.38 in Delhi, Rs 73.12 in Kolkata and Rs
72.95 in Chennai. The Total Investment
& Insurance Solutions
Similarly, diesel price on Tuesday was Rs
58.72 in Delhi, Rs 61.37 in Kolkata, Rs 62.37 in Mumbai and Rs 61.84 in
Chennai.
Petroleum products do not come under the
Goods and Services Tax (GST) and prices vary at locations according to state
taxes.
The Indian basket, comprising 73 percent
sour-grade Dubai and Oman crudes, and the balance in sweet-grade Brent, closed
trade on the weekend on Friday at $53.63 per barrel, according to the Petroleum
Ministry.
The oil basket had gained over a dollar at
the start of last week on Monday to close at $51.34 for a barrel of 159 litres.
Earlier this month, Petroleum Minister
Dharmendra Pradhan said the dynamic pricing regime would continue despite
petrol prices going up by over Rs 7 per litre since the scheme was introduced
pan-India from mid-June.
He said dynamic pricing ensures that the benefit
of even the smallest change in international oil prices can be passed down the
line to the dealers and the end-users. The
Total Investment & Insurance Solutions
"Daily revision in prices is good. When
we started daily revisions on June 16, rates dropped in the first fortnight.
Thereafter, it has increased mainly because of rise in global oil prices,"
he said. The Total Investment &
Insurance Solutions
Daily revision allows any fall in
international oil rates to be passed on to consumers immediately rather than
having to wait for 15 days as in the old system, he added. The Total Investment & Insurance
Solutions
"Should prices be hiked by Rs 2.50 or Rs
3 per litre in one go or they should be spaced out in small doses," he
asked.
Earlier, the state-run oil marketing
companies used to review and revise retail fuel prices every fortnight on the
basis of global crude oil prices, while the revision took effect from midnight. The Total Investment & Insurance
Solutions
Dynamic fuel pricing is followed in many
developed countries and India opted for it as a response to the recent
volatility in global crude oil prices.
The basket of crude oils of the 13-nation
Organisation of Petroleum Exporting Countries (OPEC) breached the
psychologically-important $50-a-barrel-mark also last week, to close at $50.36
a barrel on September 4. As per latest data, the OPEC basket closed on Friday
at $52.53.
Last month, two of OPECs biggest members -- Saudi
Arabia and Iraq -- expressed their commitment to abide by an agreement to cut
oil production that was signed earlier between OPEC and 10 other nations.The Total Investment & Insurance
Solutions
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