As Oil Marketing Companies (OMCs) increased the prices of petrol and diesel by 25 paise, petrol price reached a new record high on Friday selling at Rs 85.45/litre in the national capital.
Diesel price is retaining at Rs 75.63 per litre as Mumbai still remain at the highest price till date selling for Rs. 92.04 per litre. After holding the retail prices steady of transportation fuels for 29 days, OMCs started increasing the prices in January.
The cost of the Indian basket of crude comprising Oman, Dubai and Brent crudes was $56.19 a barrel on 20 January. Following the ongoing vaccination drive worldwide and Saudi Arabia reducing oil output, the global price for crude oil has increased.
Oil prices have been on a continuous high after the 13th Organisation of Petroleum Exporting countries (Opec)-plus meeting on 5 January decided on “adjustments to the production level for February and March 2021″. This decision significant for India since pec makes up for almost 83% of India’s oil imports while supplying 40% of global output.
“The meeting recognized that market sentiment has been buoyed recently by vaccine programmes and improved asset markets, but underscored the need for caution because of prevailing weak demand and poor refining margins, the high stock overhang and other underlying uncertainties,” Opec said.
Following the spread of the pandemic, the price for global crude oil fell to $19.90 in April. However, in December, the price hiked at $49.84 a barrel according to the data released by the Petroleum Planning and Analysis Cell.