Oil prices may be revised after elections
OIL & GAS

Oil prices may be revised after elections

Oil marketing companies are set to revise fuel prices post-elections as Covid-induced disruptions have impacted the fuel demand adversely, and the country is witnessing a second wave of Covid now.

Petrol and diesel may see revision in pricing again after the conclusion of ongoing state elections. With crude oil remaining below Rs 4,871.09 a barrel, any softening on global oil in the wake of a fresh wave of the Covid-19 pandemic and rising oil stocks in the US could mean lower petrol and diesel prices for Indian consumers.

Before the long-drawn pause, petrol and diesel fell by 22 paise and 23 paise per litre respectively on March 30. Since then, the oil marketing companies have decided to pause price revision as they want to watch the crude price movement that has now fallen to around Rs 4,748.68 a barrel.

Fuel prices in India remained unchanged on Tuesday, with oil companies continuing with static pricing of petroleum and diesel for a fortnight now. Accordingly, petrol and diesel prices remained at the previous day's level of Rs 90.56 and Rs 80.87 a litre respectively in the national capital. Across the country as well, the petrol and diesel prices remain static on Tuesday, but its retail levels varied, depending on the level of local levies in respective states.

The oil marketing companies went on a price cut for the first time this year on two consecutive days━March 24 and 25━after keeping oil prices steady for the past 24 days. It again reduced the price on March 30. Fuel prices have remained unchanged after this.

Fuel consumption, an important barometer of the health of an economy, had shown contraction for the first time in two decades, falling by a big margin of over 9% in FY21 as Covid related lockdowns curbed economic activity and reduced the movement of goods and services across the country.

According to the Ministry of Petroleum and Natural Gas’s Petroleum Planning and Analysis Cell (PPAC), the country's total consumption of petroleum products fuelled two 195 million tonne (mt) in 2020-21 as against 214 mt in the previous financial year.

While FY21 numbers show a sharp decline, in March, India's fuel consumption rose to its highest since December 2019, growing by 18% to close to about 19 mt.

For FY21, the decline in consumption has been led by diesel that remained affected throughout the year as slim economic activities resulted in the lesser requirement of transport. Diesel consumption fell 12% to 73 mt while petrol demand shrank 7% to 28 mt.

Among petroleum products, only LPG consumption has grown as the government explored the scope of using the cleaner fuel under its Ujjwala Yojana to include one crore more households while cooking activity remained active during most of the lockdown.

Other products, including aviation turbine fuel (ATF) and naphtha, remained affected due to demand compression.

Image Source


Also read: Cess on domestic crude likely to be halved

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

Oil marketing companies are set to revise fuel prices post-elections as Covid-induced disruptions have impacted the fuel demand adversely, and the country is witnessing a second wave of Covid now. Petrol and diesel may see revision in pricing again after the conclusion of ongoing state elections. With crude oil remaining below Rs 4,871.09 a barrel, any softening on global oil in the wake of a fresh wave of the Covid-19 pandemic and rising oil stocks in the US could mean lower petrol and diesel prices for Indian consumers. Before the long-drawn pause, petrol and diesel fell by 22 paise and 23 paise per litre respectively on March 30. Since then, the oil marketing companies have decided to pause price revision as they want to watch the crude price movement that has now fallen to around Rs 4,748.68 a barrel. Fuel prices in India remained unchanged on Tuesday, with oil companies continuing with static pricing of petroleum and diesel for a fortnight now. Accordingly, petrol and diesel prices remained at the previous day's level of Rs 90.56 and Rs 80.87 a litre respectively in the national capital. Across the country as well, the petrol and diesel prices remain static on Tuesday, but its retail levels varied, depending on the level of local levies in respective states. The oil marketing companies went on a price cut for the first time this year on two consecutive days━March 24 and 25━after keeping oil prices steady for the past 24 days. It again reduced the price on March 30. Fuel prices have remained unchanged after this. Fuel consumption, an important barometer of the health of an economy, had shown contraction for the first time in two decades, falling by a big margin of over 9% in FY21 as Covid related lockdowns curbed economic activity and reduced the movement of goods and services across the country. According to the Ministry of Petroleum and Natural Gas’s Petroleum Planning and Analysis Cell (PPAC), the country's total consumption of petroleum products fuelled two 195 million tonne (mt) in 2020-21 as against 214 mt in the previous financial year. While FY21 numbers show a sharp decline, in March, India's fuel consumption rose to its highest since December 2019, growing by 18% to close to about 19 mt. For FY21, the decline in consumption has been led by diesel that remained affected throughout the year as slim economic activities resulted in the lesser requirement of transport. Diesel consumption fell 12% to 73 mt while petrol demand shrank 7% to 28 mt. Among petroleum products, only LPG consumption has grown as the government explored the scope of using the cleaner fuel under its Ujjwala Yojana to include one crore more households while cooking activity remained active during most of the lockdown. Other products, including aviation turbine fuel (ATF) and naphtha, remained affected due to demand compression. Image Source Also read: Cess on domestic crude likely to be halved

Next Story
Infrastructure Urban

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Next Story
Infrastructure Urban

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Next Story
Infrastructure Transport

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement