Petrol, diesel prices may soften ahead of Diwali

<p id="content">Petrol and diesel prices may fall marginally ahead of Diwali as oil marketing companies (OMC) are looking to pass some benefit of lower global oil prices to consumers.

Sources in PSU oil companies said that a revaluation of pricing structure for petrol and diesel would be taken up this week and even if there is a case for marginal decrease prices it would be done.

OMCs in India have been holding on to the retail prices of petrol and diesel for over a month now. Even on Wednesday, the price of two petrol products remained unchanged. With this, petrol prices have now been unchanged for 43 days while diesel prices have been the same as on October 2.

Price of petrol in the national capital was Rs 81.06 per litre. In Mumbai, Chennai and Kolkata, the fuel was sold for Rs 87.74, Rs 84.14 and Rs 82.59 per litre respectively.

Diesel prices in Delhi, Mumbai, Chennai and Kolkata were Rs 70.46, Rs 76.86, Rs 75.95 and Rs 73.99 respectively.

While average price of crude for Indian refiners was about $41-41.5 a barrel in September, it stood close to $40 a barrel in October.

The prices have fallen further in November that could trigger a reduction in primp price of petrol and diesel.

Oil sector experts said that with global oil prices under pressure from slowing demand in the second wave of Covid-19 pandemic across several western countries, crude prices have fallen in recent days and could fall further.

If the trend holds, there could be positive gains for auto fuel consumers in India by way of a fall in retail prices of petrol and diesel.

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