In theory, retail prices of petrol and diesel in India are linked to the global crude prices. There is supposed to be complete decontrol of consumer-end prices of auto fuels and others such as the aviation turbine fuel or ATF. Which means that if crude prices fall, as has largely been the trend since February, retails prices should come down too, and vice versa.
Has that been happening?
No. Since June 7, when the revisions began after a 82-day hiatus, petrol is up Rs 4.98 and diesel is up by Rs 5.23. This is the highest levels in about 21 months, despite crude sill under $39 a barrel (Brent). This coincided with oil benchmarks heading for their first weekly declines,
