New Delhi: A day after Diwali, state-run oil marketing companies today reduced the price of petrol by 21 paise per litre and that of diesel by 18 paise. With international crude oil prices melting, prices of automobile fuels in India have not been increased for the last 24 days. The trend, however, could reverse soon as global crude oil prices were up today.
Oil marketing companies take into account a 15-day average of crude oil prices and the valuation of rupee to calculate the daily price of petrol and diesel in India. As of today, petrol price in Delhi was Rs 78.21 per litre, Rs 83.72 in Mumbai, Rs 78.84 in Bengaluru, Rs 81.24 in Chennai, and Rs 80.13 in Kolkata. Diesel was Rs 72.89 in Delhi, Rs 76.38 in Mumbai, Rs 73.28 in Bengaluru, Rs 77.05 in Chennai and Rs 74.75 in Kolkata.
The fuel price chart had an upward trend till October 4 when petrol prices hit an all-time high of Rs 84 per litre in Delhi and Rs 91.34 in Mumbai while diesel was at Rs 75.45 in Delhi and Rs 80.10 in Mumbai. Prices eased after that because of intervention by the central government and falling crude oil prices. Not only has the central government cut the excise duty on fuel but several state governments have also decreased sales tax or VAT. Besides, oil marketing companies are also bearing a loss of Re 1 per litre on instructions from the finance ministry.
On Thursday, China reported record crude imports leading to an increase in oil rates. Brent crude oil futures were trading at $72.27 a barrel, up 21 cents, or 0.3%, from their last close. US West Texas Intermediate (WTI) crude futures were at $61.95 per barrel, up 28 cents, or 0.4%, from their previous settlement.
Oil prices have fallen by about $15 in less than a month after peaking in early October, reaching their highest level in two-and-a-half years, with a barrel of Brent at over $85.
Brent has lost more than 16% in value since early October, while WTI has declined by more than 18% since then.