Fuel prices have remained stable for more than a month on Tuesday, June 28, 2022, just as oil marketing companies (OMCs) kept costs for petrol and diesel unchanged. There has been no change in fuel prices since Finance Minister Nirmala Sitharaman on May 21, 2022 announced a reduction in excise duty by Rs 8 per liter on petrol and Rs 6 per liter on diesel. It is important to note that retail petrol and diesel prices are different. From one state to another due to local taxes such as VAT or freight charges.
Fuel Prices in Major Cities:
petrol price in delhi stands today 96.72 per liter 105.41 per liter before the excise duty cut, and is at the cost of diesel 89.62 per liter as against 96.67. Petrol Price in Mumbai at 111.35 per liter and is retailing at Diesel 97.28 per liter.
Petrol price in Chennai is 102.63 per liter and diesel price today standing over 94.24 per liter. Petrol retailing in Kolkata 106.03 per liter and on diesel 92.76 per litre.
Meanwhile, oil rose for a third session as threats to global production risked further tightening of markets ahead of an OPEC+ meeting this week to discuss supplies. West Texas Intermediate futures climbed above $110 a barrel after adding about 5% over the past two sessions. Libya is facing more disruption in its exports due to a worsening political crisis, while anti-government protests in Ecuador have threatened to halt production at the former OPEC member.
Any disruption in supply could resonate through the global oil market, which has been squeezed by an economic rebound from Russia and heightened trade flows after the invasion of Ukraine. Some OPEC+ members have struggled to meet their production targets this year, adding to the tightness. Stephen Innes, managing partner at SPI Asset Management, said: “The structural shortfall remains unresolved. More barrels must enter the market for a meaningful and sustained reduction in oil prices.
The prospect of additional supplies from OPEC’s two major producers also looks limited. French President Emmanuel Macron told his US counterpart Joe Biden that the United Arab Emirates and Saudi Arabia are already pumping in almost as much as they can. Macron was referring to the talks he had with the ruler of the UAE, Sheikh Mohamed bin Zayed. OPEC+ ministers gathered on Thursday.
Oil is up nearly 50% this year, although fears of a global economic slowdown have put futures on track for the first monthly loss since November. However, the time-spread which traders view as an indicator of supply and demand is showing bullish signs and indicates an urgent need for more supply.