State-run oil marketing companies (OMCs) have not hiked fuel prices on Monday as international crude oil prices weakened sharply. Petrol and diesel prices have not been changed for 23 days.

International crude oil prices fell sharply by nearly 1.5 per cent on the back of a rising US dollar and fear of new pandemic curbs in Asia, especially in China, may hurt the global recovery in fuel demand.

Despite the sharp fall in crude oil rates, there has been no reduction in domestic fuel prices; both petrol and diesel continue to retail at record-high rates as a result.

In Delhi, petrol rate remains static at Rs 101.84 per litre and nearly Rs 108 in Mumbai. The price in Kolkata and Chennai remain over Rs 102 per litre. There are at least 25-30 cities where petrol price has crossed Rs 100 per litre.

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Diesel prices also remain high across the country. It is retailing at Rs 89.87 per litre in the national capital, but above Rs 90 in all other major cities including Mumbai, Kolkata, and Chennai.

WHEN WILL FUEL PRICES REDUCE?

Fuel prices will reduce only if state-run oil companies cut rates as part of daily revision. OMCs have held rates for almost three weeks as international crude oil prices remain volatile.

The central government has already made it clear that it is not in a position to cut taxes levied on fuel prices at the moment. It may be noted that India collects the highest taxes on petrol and diesel in the world, following a sharp hike in excise duty on domestic fuel prices last year after the pandemic.

Even state governments have said they would not be able to cut value-added tax (VAT) collected on petrol and diesel at the moment due to the economic situation. Therefore, fuel prices can come down only if OMCs decide to lower prices through daily revision.

At the moment, however, OMCs are also not in a rush to cut petrol and diesel prices, given the volatility in international crude oil rates.

Fuel rates in Indian cities: