Petrol, diesel prices saw another big cut on Tuesday after which petrol prices fell below Rs 80 per litre mark in Mumbai for the first time after March 2018. Today fuel prices were cut by 40-45 paise per litre across major cities of the country. After today’s price cut, non-branded petrol in national capital Delhi was priced at Rs 74.07 as against Rs 74.49 on Monday and diesel was retailing at Rs 68.89 compared to Rs 69.29 yesterday, according to data available on Indian Oil Corporation website.
In Mumbai, petrol was sold at Rs 79.62 per litre on Tuesday compared to Rs 80.03 on Monday. Diesel in Mumbai became cheaper by 43 paise to Rs 72.13 per litre.
Also, in the month of November so far, petrol prices have come down by nearly Rs 5.50 per litre while diesel has become cheaper by over Rs 5 across major cities of the country. The recent cut in fuel prices has given a big relief to consumers and will have a positive impact on the country’s inflation reading, which the RBI uses for taking decisions on policy rates.
It may be noted that international crude oil prices saw a major fall last week. Oil prices slumped to its lowest level in 2018 on Friday after 8 per cent correction in prices. Brent crude oil futures hit their lowest since December 2017 at $59.04 per barrel. On Tuesday, it was trading near $60.50 per barrel mark.
This recent fall in crude prices indicates retail fuel prices are likely to come down further in India in the coming days. Petrol, diesel price in India are fixed, based on the last 15-day average price of crude and rupee-dollar exchange rate along with dealer commission, and taxes, which does not change on a daily basis. It may be noted that the rupee has also appreciated over 3 per cent against the US dollar in November. On Monday, the rupee closed at 70.87 against the US dollar.