State-owned fuel firms benchmark retail rates to Arab-Gulf international oil prices and a formula decides them, the IOC chairman said, adding that demand dropped drastically in the aftermath of lockdowns imposed across the globe to curb spread of coronavirus, sending oil prices plunging to multi-year low.
This included oil futures falling below zero on one day in US trading. Reducing prices in line with that fall was not “sustainable” as cracks - the difference between crude oil (raw material) and petroleum product (finished goods) prices - were running negative, he said.
Fuel prices increase for 20th day, petrol crosses Rs 80 a litre mark in Delhi on June 26, 2020.
The Opposition has been relentlessly attacking the Government of India over the fuel price hike. Congress leader Priyanka Gandhi said on Thursday that it has become clear that the Centre is only interested in picking pockets of the people even in times of crisis.
The Congress will hold mass protests across the country on Monday over the “unprecedented” rise in petrol and diesel prices.