Crude oil prices have fallen again amidst concerns over weak demand from China, and the 13-member Organization of Petroleum Exporting Countries (OPEC) has also reduced its forecast for future demand growth. The group has cited economic challenges ahead, as a recession threatens most parts of the world in 2023, while India is expected to do comparatively well. But despite a global drop in oil prices, Indian motorists are yet to see any respite in petrol and diesel rates, even though commercial LPG became cheaper.
Oil firms still paring losses
At Rs 96.72 per litre for petrol and Rs 89.62 a litre for diesel, India’s fuel rates remain stagnant six months after the prices were last slashed in May. Since then, a compensation of more than 20,000 crore has been approved for oil firms which suffered record losses between November last year and April. After the war in Ukraine, India has been importing discounted oil from Russia and apart from that cheaper oil has been flowing in from Iraq, which is now strengthening energy ties with China as well.
National capital Delhi continues to provide cheapest fuel to motorists with petrol and diesel price at Rs 96.72 and Rs 89.62 per litre respectively, while restrictions on BS-III and BS-IV vehicles have been relaxed.
Fuel remains costliest in Mumbai at Rs 106.31 a litre for petrol and Rs 94.27 per litre for diesel.
Chennai on the other hand is selling petrol for Rs 102.63 per litre and diesel for Rs 89.62 a litre, while Kolkata residents are paying Rs 106.03 per litre and Rs 92.76 per litre for petrol and diesel respectively.
Buoyed by the festive season, India’s crude demand went up by as much as 1,13,000 barrels per day during the month of October.