New Delhi: Tracking a fall in international crude oil rates, petrol and diesel prices were cut down by 40 paise and 41 paise per litre, respectively, today. As crude struggle to come out of a bearish market, state-run oil retailers have not increased fuel prices in India for over a month. Rates are now lower than August figures. A litre of petrol today costs ₹ 75.57 in Delhi, ₹ 81.10 in Mumbai, ₹ 76.17 in Bengaluru, ₹ 78.46 in Chennai, ₹ 77.53 in Kolkata and ₹ 80.12 in Hyderabad.

Diesel costs ₹ 70.56 in Delhi, ₹ 73.91 in Mumbai, ₹ 70.93 in Bengaluru, ₹ 74.55 in Chennai, ₹ 72.41 in Kolkata and ₹ 76.77 in Hyderabad. Retail fuel prices in India are directly linked to global crude oil rates as 80% of crude oil requirement is met from overseas. Strengthening of the rupee against the dollar also makes petrol, diesel cheaper in India.

Petrol and diesel prices had reached a peak on October 4 before declining following a cut in excise duty and lowering of sales tax or VAT in several states. Oil retailers are also bearing a Re 1 loss on every litre of non-branded petrol, diesel sold in India on instructions from the finance ministry.

The petrol price chart shows that the current rates are around the same level as the first week of July while the rate of decrease of diesel hasn’t been as steep. The price gap between petrol and diesel has narrowed and in several states like Goa, Gujarat and Odisha petrol is now cheaper than diesel.

Crude prices dipped again on Friday to 2018 lows after US crude inventories increased to their highest level since December 2017 amid concerns of an emerging global glut. WTI crude futures were around $53 per barrel on Thursday morning while front-month Brent crude oil futures were at $62 per barrel.

Oil prices have plunged by around 30 percent since their last peaks in early October, as global production started to exceed consumption in the fourth quarter of this year, ending a period of undersupply that started in the first quarter of 2017, according to data in Refinitiv Eikon.

All eyes are now on OPEC which is expected to announce supply cut.

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