The basket of crude oil that India procures has reached a decade high of $121 per barrel, but retail selling prices of petrol and diesel progress remain frozen. As per the data available from the oil ministry’s Petroleum Planning and Analysis Cell, the Indian basket yesterday touched $121.28, matching levels seen in February/March 2012.
The Indian basket of crude oil averaged $111.86 per barrel between February 25 and March 29, the instantaneous period after Russia’s invasion of Ukraine sent oil on the fire. It averaged $103.44 a barrel between March 30 and April 27. On Thursday, the international oil prices held near a 13-week high, according to the power demand from key buyers like the US.
However, the retail fuel rates continue to be on a freeze in India. India is 85% dependent on imports to meet its oil needs and so local pump rates are benchmarked against international prices. As per sources, the industry was selling petrol at a loss of about Rs 18 per liter and diesel at Rs 21 a liter.
The fuel prices were last revised to align with the cost on April 6 and have been on freeze since then. Rates were diminished in the previous month after the government cut excise duty on petrol by Rs 8 per litre and that on diesel by Rs 6.