IOC says international oil prices range-bound

Petrol, diesel prices on freeze: IOC says international oil prices range-bound

While petrol price hasn't changed since September 22, diesel rates have been static from October 2

Representative image. Credit: iStock

State-owned Indian Oil Corp (IOC) on Friday said international oil prices have been range-bound in the last few weeks, warranting no revision in retail petrol and diesel rates.

While petrol price hasn't changed since September 22, diesel rates have been static from October 2.

"Crude oil has not seen any drastic movement," IOC Chairman Shrikant Madhav Vaidya told reporters here. "Crude oil has traded in the USD 39 to 42 per barrel range in recent weeks."

The basket of crude oil that India buys has averaged around USD 40 per barrel in October as against USD 41.35 in the previous month.

He said this range-bound movement does not warrant a change in retail rates.

As per practice, petrol and diesel prices are revised daily on the basis of change in benchmark international oil price and foreign exchange rate.

Petrol in Delhi currently costs Rs 81.06 per litre while diesel is priced at Rs 70.46.

The retail price of diesel was cut by Rs 3.10 per litre and petrol by Rs 0.97 between September 1 and October 2, he said.

Vaidya said the cracks or difference between crude oil and product price, have been low, which is a matter of concern.

Petrol and diesel cracks are around USD 2 per barrel as against USD 7.8 and USD 13.2 a barrel respectively last year, he said.

Substantial downward revision and stability in the prices of essential petroleum products – petrol, diesel, LPG cooking gas and kerosene – in the recent months, have brought much-needed relief for the common man as well as the poorer sections of society.

There has been no change in the selling price of LPG for domestic use since July.

Even in the case of subsidised kerosene being supplied through the public distribution system (PDS), the cumulative reduction in retail price has been substantial. In Mumbai, the price has been cut by Rs 12.73 per litre since February 16.

In the latest instance, PDS Kerosene price in Mumbai came down by Rs 2.19 per litre at the beginning of this month – from Rs 25.84 per litre to Rs 23.65 a litre.