Diesel drops for the first time in 3 months, petrol costlier by 28 paise

State-run oil retailers slashed diesel price by 16 paise per litre on Monday, the first auto fuel rate reduction since April 15 even as petrol became costlier by 28 paise, the 39th hike since May 4, a day after the results of five assembly polls were declared.

The first diesel price reduction in about three months came after international benchmark Brent crude fell by $1.61 a barrel or 2.06% at the Friday close, compared to its peak of $77.16 last Monday. Domestic fuel retailers align pump prices of petrol and diesel with their respective international benchmarks of previous day, which often move in tandem with crude oil rates. International oil markets do not operate on weekends.

According to executives working in state-run oil marketing companies, companies have already recovered their past revenue losses on diesel like the one they suffered for 66 days from February 27 when rates were not raised because of assembly elections in four states and one Union Territory.

The revenue losses on petrol waere higher compared to diesel, hence its saw a higher price surge in the last 70 days, they said requesting anonymity. So far, petrol prices have jumped by ₹10.79 a litre in 70 days, while diesel prices have jumped by ₹8.99 after factoring in first rate cut by 16 paise on the fuel.