New Delhi, Aug 22: The price of petrol was dropped by 15 to 20 paise per litre across the country on August 22 after 35 days of stability. But, the fourth in case of diesel in less than a week.
In Delhi, the price of petrol and diesel was reduced by 20 paise apiece. On the day of the price decrease, petrol was sold at Rs 101.64 per litre in the national capital, while diesel was offered at Rs 89.07 per litre.
The retail price of petrol in Mumbai has been reduced to Rs 107.66, down 17 paise from the previous price of Rs 107.83. On May 29, the financial hub became the first city in the country to sell petrol for more than Rs 100 per litre.
In Maharashtra's capital, the price of diesel fell by 20 paise to Rs 96.64 a litre. In Kolkata, the price of fuel and diesel was reduced by 15 and 19 paise, respectively.The price of a litre of fuel in Chennai was reduced by 15 paise to Rs 99.32.
The reduction came as international oil prices tumbled to their lowest level since May, after the US Federal Reserve signalled it was set to start tapering asset purchases within months, hurting commodities and lifting the dollar.
The price cut in diesel is the fourth since August 18, when the reduction cycle began. All four reductions have been of 20 paise per litre each.
On the previous three occasions when diesel rates were cut, petrol prices remained unchanged.
Sunday''s cut in petrol price came after 36 days of status quo in rates. Diesel rate change was effected after 33 days of no change.
The freeze in rate revision coincided with Parliament session, where the opposition parties tried to corner the government on various issues including the hike in fuel prices.
Petrol and diesel prices were last hiked on July 17.
Prior to that, the petrol price was increased by Rs 11.44 a litre between May 4 and July 17. Diesel rates had gone up by Rs 9.14 during this period.
The price hike during this period pushed petrol prices above Rs 100-a-litre mark in more than half of the country, while diesel crossed that level in at least three states.
International oil rates have fallen to USD 66 a barrel from USD 75 per barrel touched last month.
India is dependent on imports to meet nearly 85 per cent of its oil needs and so benchmarks local fuel rates to international oil prices.
Following the US Federal Reserve's announcement that it will begin decreasing asset purchases within months, international oil prices plummeted to their lowest level since May, hitting commodities and raising the currency.