Fuel prices maintain stability amidst volatility in global oil market

New Delhi, Sep 17 (IANS) Auto fuel prices in the country have maintained stability amidst volatility in global oil prices with crude on the boil again rising sharply for past few days.

The oil marketing companies (OMCs) on Friday kept pump prices of auto fuels petrol and diesel unchanged, the 12th consecutive day of no revision, as they preferred to watch the global oil situation before making any revision in prices.

Accordingly, the price of petrol and diesel remained unchanged at Rs 101.19 and Rs 88.62 per litre in Delhi, as per Indian Oil Corporation, the country's largest fuel retailer.

In Mumbai, the petrol price is stable at Rs 107.26 per litre on Friday, while diesel rates also remained unchanged at Rs 96.19 a litre.

Across the country as well, petrol and diesel prices remained static on Friday but their retail rates varied depending on the level of local taxes in a particular state.

Fuel prices have been hovering at record levels on account of 41 increases in its retail rates since April this year.

Under the pricing formula adopted by oil companies, rates of petrol and diesel are to be reviewed and revised by them on a daily basis. The new prices becomes effective from morning at 6 a.m.

The daily review and revision of prices is based on the average price of benchmark fuel in the international market in the preceding 15-days, and foreign exchange rates.

But, the fluctuations in global oil prices have prevented OMCs to follow this formula in totality and revisions are now being made with longer gaps. This has also prevented companies from increasing fuel prices whenever their is a mismatch between globally arrived and pump price of fuel.

After touching $74 a barrel mark couple of weeks back and then falling, benchmark Brent crude prices have bounced back to reach closer to $76 a barrel now.