Fuel prices in India were unchanged for the third straight day on Thursday despite another slide in international oil prices.
Petrol price pet litre was stalled at Rs 70.63 in New Delhi, Rs 76.25 in Mumbai, Rs 73.29 in Chennai and Rs 72.71 in Kolkata. Diesel prices per litre also remained the same at Rs 64.54 in New Delhi, Rs 67.55 in Mumbai, Rs 68.14 in Chennai and Rs 66.30 in Chennai.
Since Monday, global crude benchmarks have seen at least over 5 percent slide in their prices. While Brent slipped to $56 a barrel levels, US West Texas Intermediate (WTI) fell to $46/barrel. The decline was mainly due to the less than expected decrease in inventory stockpiles in the US and the prevailing concerns of an oversupplied market when global economic activity is slowing down.
Despite the fall in international oil prices to new lows for the year, the change has not been fairly reflected in the fuel prices in India. Since June 2017, the country's oil marketing companies have been revising petrol and diesel prices on a daily basis to reflect the global oil price changes. These are based on a complex formula that takes into account the 15-day average crude oil price and the exchange rate of rupee against the US dollar to come at a retail price.
The price at which you purchase fuel at your local refuelling station also includes Central and State sales taxes along with local government taxes.