Petrol price reduced by 20p, diesel cheaper by 18p
Petrol price was cut by 20 paise a liter and diesel by 18 paise on Sunday, the 29th straight daily reduction in fuel rates. The price reduction has wiped away all of the massive price increase in petrol witnessed in two months since mid-August that had triggered a political uproar. Fuel prices have been on the decline since October 18.
Petrol, diesel prices in Delhi, Mumbai today after reduction
Petrol price in Delhi has been cut to Rs. 76.71/liter from Rs. 76.91 on Saturday, according to a price notification issued by state-owned fuel retailers. Diesel is being now sold at Rs. 71.56/liter as compared to Rs. 71.74 on Saturday. With this, the reduction in rates in the last one month totals Rs. 7.29/liter for petrol and Rs. 3.89/liter for diesel.
Price hikes on petrol in two months wiped out
The latest price reduction has wiped out all of the price hikes on petrol in two months beginning August 16 and more than half on diesel. The reduction in diesel rates has been slower due to moderate fall in its benchmark international prices.
Fuel prices touched record high on October 4
Petrol price touched a record high of Rs. 84/liter in Delhi and Rs. 91.34 in Mumbai on October 4. That day, diesel peaked to an all-time high of Rs. 75.45/liter in Delhi and Rs. 80.10 in Mumbai. Prices had started to climb from August 16. Petrol in Delhi was priced at Rs. 77.14/liter and in Mumbai it cost Rs. 84.58 on August 15.
Prices hiked by over Rs. 6 between August 16-October 4
Coming to diesel prices, on August 15, it was priced at Rs. 68.72 per liter in Delhi and at Rs. 72.96 in Mumbai. Meanwhile, petrol in Mumbai Sunday cost Rs. 82.28 per liter, and diesel was priced at Rs. 74.97. Between August 16 and October 4, the petrol price was hiked by Rs. 6.86 per liter and diesel by Rs. 6.73.
Government decided to cut excise-duty on fuel on October 4
On October 4, the government decided to cut excise duty on petrol and diesel by Rs. 1.50/liter and asked state-owned fuel retailers to subsidize prices by another Re. 1. Many states matched that with a reduction in local sales tax or VAT. On October 17, as international oil-prices continued to rise, petrol and diesel prices in Delhi increased to Rs. 82.83 and Rs. 75.69.
International oil prices have been declining since October 18
But since October 18, international oil prices have been falling, and the rupee has also appreciated, resulting in a decline in retail rates. 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.
