11:04 GMT11 April 2021
Listen Live
    Get short URL
    0 20

    New Delhi (Sputnik): Retail oil prices in India, in theory, are linked to global crude prices. While any increase in international crude prices is promptly passed on to consumers, it is not the case when the prices crash. Since the beginning of the lockdown, prices have remained unchanged.

    India’s state-owned oil retailing companies increased the prices of petrol and diesel for a ninth consecutive day on Monday, ending an 82-day-long hiatus in the rate revision since the beginning of the lockdown. The cumulative price increase since 7 June has been INR 5 for per litre of petrol (approximately $0.066) and INR 4.87 for a litre of diesel (approximately $0.64).

    International prices of crude per barrel nosedived from an average of $55 in February to $35 in early March and to $20 by the end of March because of the slump in demand amid the global pandemic. The current prices of crude for the Orgnisation of Petroleum Exporting Countries (OPEC) basket is around $37 per barrel.

    But consumers in India were not passed along the benefit of the fall in prices - instead the federal government hiked taxes on petrol and diesel to offset the tight fiscal situation. Besides federal taxes, state governments also levy local taxes or value added taxes on petroleum products.


    India Warns OPEC Against Further Oil Production Cuts - Petroleum Minister
    India's Opposition Urges Gov't to Stop Profiteering on Oil Prices, Provide Relief Amid COVID-19
    India Can Buy More US Oil at Cheaper Rates But There Could Be International Complications - Experts
    OPEC, oil prices, lockdown, New Delhi, India
    Community standardsDiscussion