Due to the Coronavirus crisis, the demand for crude oil has come down and all the oil storage facilities have also reached their full capacity. On Monday, for the first time ever since 1986, the price of crude oil went below zero. This is the largest decline in the price of American benchmark crude and West Texas Intermediate (WTI) in history. The price of crude oil in the market went down to $ 37.63 per barrel.
This will not affect India. India’s dependence is on the supply of Brent crude and not upon WTI. Therefore, India will not be much effected by the price of American crude. Brent price still remains above $ 20. Price is so high in major metros. According to the IOCL website, the price of one litre of petrol in Delhi, Kolkata, Mumbai and Chennai today is 69.59, 73.30, 76.31 and 72.28 (INR) respectively. Talking about diesel, its prices in Delhi, Kolkata Mumbai and Chennai are 62.29, 65.62, 66.21 and 65.71(INR) respectively.
OPEC and other countries discussed about oil market. As crude oil prices reached the bottom level, the Organization of the Oil Exporting Countries & OPEC said that several ministers of its member countries and some other operatives of OPEC had teleconferenced on Tuesday. During the call, the price of crude oil in the global market was discussed. In this context, OPEC tweeted that the members discussed in depth the current unforeseen situation in the oil market.
The new rates are applicable from 6 o’clock in the morning. After adding excise duty, dealer commission and other things to the price of petrol and diesel, its price almost doubles.
This is the basis for fixing the price. Petrol and diesel prices change daily, depending on what the crude prices are in the international market along with foreign exchange rates. On the basis of these standards, the oil companies of fix the petrol and diesel prices daily.
Dealers also add their margin The dealers are the people running the petrol pumps. They sell at retail prices after adding taxes and their own margins to the consumers. This cost is also added to the petrol rate and diesel rate.