The price of petrol has been reduced by 20 paise a liter and diesel by 18 paise a liter. This is the 29th straight daily reduction in rates. The price hikes had, earlier, increased a political uproar.
The rates have been on the decrement since October 18. This has cleared out all hikes in fuel prices that were witnessed in the past two months i.e from beginning August 16.
Petrol price in Delhi has been decreased to Rs 76.71 a liter from Rs 76.91, according to a price notification issued by state-owned fuel retailers. Diesel is being now sold at Rs 71.56 per liter as related to Rs 71.74. Petrol in Mumbai, currently, costs Rs 82.28 per liter and diesel is priced at Rs 74.97.
With this, the reduction in rates in the last one month totals Rs 7.29 per liter for petrol and Rs 3.89 a liter for diesel. The reduction in diesel rates has been gradual due to moderate fall in its benchmark international prices, according to oil company price notifications.
Petrol price had reached a record high of Rs 84 per liter in Delhi and Rs 91.34 in Mumbai on October 4. Diesel on that day had peaked to an all-time high of Rs 75.45 a liter in Delhi and Rs 80.10 in Mumbai.
Prices had commenced climbing from August 16. Petrol in Delhi was priced at Rs 77.14 per liter and in Mumbai, it cost Rs 84.58 on August 15. Diesel on that day was priced at Rs 68.72 per liter in Delhi and at Rs 72.96 in Mumbai.
Between August 16 and October 4, the petrol rate was hiked by Rs 6.86 per liter and diesel by Rs 6.73. On that day, the government confirmed to cut excise duty on petrol and diesel by Rs 1.50 per liter each and asked state-owned fuel retailers to subsidize prices by another Re 1 a litre by decreasing their margins. Many states comprising Maharashtra matched that with a reduction in local sales tax or VAT.
As a result, the petrol price had reduced to Rs 81.50 per liter in Delhi and diesel to Rs 72.95 a liter on October 5. In Mumbai, rates fell to Rs 86.97 per liter for petrol and Rs 77.45 in case of diesel.
As the international oil prices continued to increase, the price of petrol and diesel in Delhi increased to Rs 82.83 and Rs 75.69 on October 17. In Mumbai, rates touched Rs 88.29 a liter for petrol and Rs 79.35 for diesel.
Since then, international oil prices have been falling and the rupee has also appreciated, resulting in a decline in retail rates. Industry source stated, the retail prices of petrol and diesel may reign easily 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.