Petrol prices in metros today escalated marginally while diesel maintained its price. Petrol prices in Delhi, Mumbai, Chennai, and Kolkata surged by 14-16 paise/litre with effect from August 22, 6 am IST.
As per Indian-Oil corporation price (per litre) in Mumbai was revised to Rs. 88.02, in Chennai at Rs. 84.40, in Kolkata Rs. 82.87 and Rs.81.35 in Delhi while Diesel maintained its price. Petrol price in Mumbai has escalated by an immense margin in the last one week.
The fuel prices in states differ due to the prices of crude oil, local taxes, and foreign exchanges. This has been the third hike since the oil companies started revising prices concerning the cost.
As per reports, India is Asia’s third-biggest economy, which imports and exports refined fuels.
The rise in the prices of petrol and diesel has been observed since June. There was a point when diesel prices surpassed the petrol price, creating history.
The sales of petroleum products in India, the world’s third-biggest oil consuming nation, had in April fallen to the lowest since 2007.
How has the production been affected?
Crude production in India declined 6% while natural gas contracted by 12% as compared to the last year in June.
The contraction noted by fields from ONGC was 1% while that observed from the private sector has been 16% and that of Oil India Ltd. has been 10%.
Due to the COVID-19 pandemic, inevitable factors like the defaulting wells, slowing down the process of oil-field enhancement and others have been a block in the production process.
How has import been affected?
The nationwide lockdown has played a huge role in shrinking the demand for oil in India which has helped India to budget the oil imports. In addition, the declined crude prices in the world market also played a key role in India saving an enormous amount on oil imports.
In the first quarter of the financial year 2021, India has contracted the cost of importing oil by 60% due to the lessening of demand. India’s oil imports fell about 29 percent (year-over-year) to around 13.44 mt in June that has been recorded the lowest since 2011.
Reports suggest that India did not import any oil from Venezuela since 2009, creating a record. RIL (Reliance Industries Ltd.) has a swap deal with Venezuela to supply diesel in exchange for fuel but no supply since April has been obtained.
OPEC (Organization of the Petroleum Exporting Countries) has lowered oil production to the lowest level since the Gulf War of 1991.