Buoyed by the movement of fuel prices in the past few days, the government is hopeful of further reduction in the rates of petrol and diesel in the coming days, government sources told DNA on Friday.
"As per the assessment, the retail prices of petrol and diesel may reign easy in the next few days," a top government official said.
The retail selling price of petrol and diesel is dependent on the international prices of benchmark fuel and the rupee-US dollar exchange rate.
International crude prices have headed south in the past 8 days, while rupee has strengthened in the same period. In line with these developments, retail prices have registered a fall of Rs 1.98 a litre on petrol and 96 paise per litre on diesel.
Fuel has become expensive in recent months due to increase in the international oil prices and depreciation of rupee. The external factors impact the domestic oil scene as a large proportion of country's requirement is met through imports.
The government on October 4 reduced the excise duty by Rs 1.50 per litre to provide relief to the consumers. Oil marketing companies were also asked to reduce their margin by Re 1 a litre to further check the rising prices.
