Fuel prices were unchanged on Tuesday as global crude oil rates increased marginally. Petrol and diesel prices have not been hiked for over a month.

While international crude oil prices rose marginally today, benchmark Brent crude oil remains below $70 per barrel. However, prices could increase soon as major oil suppliers are not likely to boost supply anytime soon amid fears of weaker global demand.

This is not a good development for India as domestic fuel prices won’t come down if global crude oil prices remain at current levels.

Explained | How record fuel prices are making life difficult for Indians

In Delhi, a litre of petrol is retailing at Rs 101.84 per litre and nearly Rs 107 per litre in Mumbai. The price in Kolkata remains over Rs 102 per litre, but it has been reduced by Rs 3 per litre in Chennai to Rs 99.47 per litre after the state government cut taxes.

There are at least 25 cities across 15 states where petrol is retailing at over Rs 100 per litre.

Diesel rates also remain at a record high across the country. A litre of diesel costs Rs 89.87 per litre in the national capital — the lowest among most major cities. The price of diesel has crossed Rs 90 in many parts of the country.

WILL FUEL PRICES REDUCE?

A reduction in domestic fuel prices seems difficult at the moment, given the fact that the government has denied cutting excise duty levied on petrol and diesel.

Finance Minister Nirmala Sitharaman reiterated on Monday that the government will not be able to reduce high excise duty on fuel and blamed the past UPA government for the current prices.

She also said states and the Centre have to discuss the matter in detail before any decision can be taken.

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Most state governments have also ruled out cutting value-added tax (VAT) and sales tax levied on fuel. Therefore, the only relief citizens can expect can come if state-run oil marketing companies (OMCs) decide to reduce rates as part of daily revision.

Given the volatility in the international oil market, the prospect of a price reduction through daily revision seems unlikely at the moment. At the most, citizens can expect OMCs to hold rates at current levels for the time being.

Fuel rates in Indian cities: