Petrol, diesel prices fall after 16 straight surge days

After 16 days of consecutive price hikes, oil prices declined today as Indian Oil Corp, the country's top refiner and fuel retailer, marginally cut fuel prices across India, its website showed on Wednesday.

Petrol prices in Delhi have been reduced by 60 paise to Rs 77.83 /litre on Wednesday, while diesel was at Rs 68.75 /litre, 56 paise lower than Tuesday's price.

Fuel prices vary from state to state due to local taxes.

Domestic petrol and diesel prices touched a record high on Friday. Companies have raised prices of petrol and diesel by Rs 3.80 and Rs 3.38 a litre respectively in the last 16 days after keeping a price freeze for about 19 days ahead of Karnataka elections.

Petrol and diesel are being sold at record prices in the country, prompting demand for duty cuts to cushion motorists, which has been resisted by the government. The Centre has said it was seeking a ‘long-term’ solution to the price problem.

In a move towards finding a long-term solution, oil ministry headed by Dharmendra Pradhan gave an in-principle nod to the Indian Commodity Exchange (ICEX) to launch futures on petrol and diesel, yesterday.

In global markets, oil prices fell to about $75 a barrel as Saudi Arabia and Russia said they were ready to ease supply curbs that have pushed crude prices to their highest since 2014.

India's three state-run fuel retailers - IOC, BPCL and Hindustan Petroleum Corp - control most of India's fuel retail market and tend to move their fuel prices in tandem.