Petrol gets cheaper by 40p/liter and diesel by 33p/liter
Petrol price was cut by 40 paise a liter and diesel by 33 paise a liter on Sunday, the 11th straight reduction in rates on softening international oil prices. Petrol in Delhi now costs Rs. 80.05 a liter and diesel is priced at Rs. 74.05 per liter, according to a price notification issued by state-owned oil firms. Here's more.
This is the 11th straight cut
In 11 straight cuts, petrol price has been reduced by Rs. 2.78 per liter and diesel by Rs. 1.64. The rates are off their record high of Rs. 84 per liter for petrol and Rs. 75.45 a liter for diesel touched on October 4.
Govt decided to cut excise duty on Oct 4
On October 4, the government decided to cut excise duty on petrol and diesel by Rs. 1.50 per liter each and asked state-owned fuel retailers to subsidize by another Re. 1 a liter by reducing their margins. Subsequent to this, the petrol price came down to Rs. 81.50 per liter and diesel at Rs. 72.95 a liter on October 5, the statement said.
International oil prices have been falling since Oct 18
But as the international oil prices continued to rise, the price of petrol and diesel in Delhi increased to Rs. 82.83 per liter and Rs. 75.69 per liter by October 16. But beginning October 18, international oil prices have been falling and the rupee has also appreciated. The twin factors have brought down fuel prices to two-month low.
Large proportion of country's fuel requirement is met through imports
"As per the assessment, the retail prices of petrol and diesel may reign easily in the next few days," an official statement had said on October 26. 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.
