In India Petrol and diesel prices have started rising again with the rise of crude oil prices even as fuel prices did not change with crude oil prices during the lockdown to curb the coronavirus. On Sunday the Petrol and diesel prices rose for the second day because of the recovery in the crude oil prices.
According to Indian Oil Corporation Limited (IOCL), the petrol and diesel prices rose 60 paise per liter in Delhi. The petrol prices increased from Rs 71.86Rs to 72.46 per liter while the diesel prices increased from Rs 69.99 to Rs 70.59 per liter.
In order to earn profit from falling crude prices in the international market, the Indian government had raised excise duty on diesel by Rs 13 a liter and on the petrol, the excise duty was raised by Rs 10 a liter last month. However, as crude oil is recovering from the steep fall it had amid global lockdown, retail prices are also recovering significantly.
The Indian government claims that it has also taken full advantage of cheap crude oil prices by filling the strategic reserves up to its fill. The government further says that it has saved Rs 5,000 crore in foreign exchange.
As the government has reduced the restrictions in the lockdown the oil demand is also rising and a similar situation is being observed globally. The increase in the industrial production and retail usage of fuel has also helped the crude oil prices to revive.
At the same time, OPEC producers and allies have agreed to extend their historic production cut for another month as crude recovers to near $40 a barrel. They first agreed in the month of April to cut supply by a record 9.7 million barrels every day during May-June to offset the global oil market and lift prices that collapsed due to the coronavirus crisis.