Petrol, diesel rates remain unchanged across cities even as crude oil boils

New Delhi: On Tuesday, March 8, 2022, fuel prices in major cities remained unchanged besides the fact that there were speculations of price hike from today. Despite global crude oil prices reaching $127 per barrel owing to the Ukraine-Russia war, the prices have stayed stable for more than 120 days.

Since the daily review of pricing began in June 2017, this is the longest period in which rates have stayed stable. However, now that assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Goa, and Manipur have concluded, there is conjecture that petrol prices may jump by Rs 12 to Rs 15 per litre.

There is a probability that they will climb after the results are released on March 10.

The central government reduced excise duty on November 4, 2021, to provide relief from historically high prices. The government reduced the duty on petrol by Rs 5 per litre and on diesel by Rs 10 per litre, resulting in significant reductions in fuel prices.

Later, in December 2021, the Delhi government cut the value-added tax on petrol from 30% to 19.40%. Petrol prices in the national capital have been reduced by Rs 8.56 per litre as a result of this.

Oil marketing companies (OMCs) are feeling the heat as worldwide crude oil prices have risen beyond $130 per barrel while domestic prices have remained steady for the past four months due to elections.

Brent, the worldwide standard, momentarily surpassed $139 per barrel Thursday, reaching its highest level since 2008. Oil prices have lately risen on fears that Russia's invasion of Ukraine will disrupt already scarce supplies. Russia is one of the world's top energy producers, and oil prices were already high prior to the attack due to the global economy's need for additional fuel following its coronavirus-caused shutdown.