Industry sources said as per the assessment, the retail prices of petrol and diesel may reign easy in the next few days.

Petrol price on December 30 was cut by 22 paise per litre to its lowest level in 2018 while diesel rates were reduced by 23 paise to a nine-month low. Petrol price in Delhi was cut to ₹69.04 per litre from ₹69.26 while diesel rates came down to ₹63.09 from ₹63.32 a litre, according to the price notification of state-owned oil firms.

Petrol prices, which have been on a decline since October 18 except for one day, are at their lowest level of 2018. Diesel rates are at their lowest since March-end.

In all, petrol price has fallen by ₹13.79 per litre since October 18, more than negating all of the hike that was witnessed in the two-month period beginning mid-August. Diesel prices have declined by ₹12.06 per litre in two and half months.

Record high

Petrol price had touched a record high of ₹84 per litre in Delhi and ₹91.34 in Mumbai on October 4. Diesel on that day had peaked to ₹75.45 a litre in Delhi and ₹80.10 in Mumbai.

Prices had started to climb from August 16.

Petrol in Delhi was priced at ₹77.14 and in Mumbai at ₹84.58 per litre on August 15. Diesel on that day was priced at ₹68.72 per litre in Delhi and ₹72.96 in Mumbai.

Between August 16 and October 4, petrol price was hiked by ₹6.86 per litre and diesel by ₹6.73.

On that day, the government decided to cut excise duty on petrol and diesel by ₹1.50 per litre each and asked state-owned fuel retailers to subsidise the price by another Re 1 a litre by reducing their margins. Subsequent to this, the petrol price moderated to ₹81.50 per litre in Delhi and diesel to ₹72.95 a litre on October 5. In Mumbai, rates fell to ₹86.97 per litre for petrol and ₹77.45 in case of diesel.

As the international oil prices continued to rise, price of petrol and diesel in Delhi increased to ₹82.83 and ₹75.69 on October 17. In Mumbai, rates touched ₹88.29 a litre for petrol and ₹79.35 for diesel. But since then, international oil prices have been falling and rupee has also appreciated, resulting in a decline in retail rates.

During the last two and half months, petrol price rose on just one day — by 10 paise on December 18. Diesel rates rose on December 17 and 18 by 9 paise and 7 paise respectively.

Industry sources said as per the assessment, the retail prices of petrol and diesel may reign easy in the next few days. The retail selling price of petrol and diesel is dependent on the international prices of benchmark fuel and the rupee-US dollar exchange rate. This is because a large proportion of the country’s requirement is met through imports.