Fuel prices continue to slide as global crude rates ease

New Delhi: State-run oil-marketing companies continued to cut the prices of key transport fuels — petrol and diesel — well into the fifth week on Sunday on lower global crude oil prices.

According to the Indian Oil Corp data, petrol was priced at Rs 76.71 per litre in the national capital on Sunday, 20 paise lower than Saturday.

Petrol prices also fell by 20 paise in Mumbai to Rs 82.23 per litre. In Kolkata and Chennai, petrol sold at Rs 78.65 and Rs 79.66 per litre.

As per the daily dynamic pricing regime, domestic fuel prices depend on international fuel prices on a 15-day average, besides the value of the rupee.

Prices vary from region to region due to local taxes, as the products are excluded from the GST regime. Delhi has the lowest tax rate among the four metros.

In tandem with petrol, the cost of diesel declined on Sunday across the four metros.

The price of diesel in Mumbai was down 19 paise at Rs 74.97 per litre.

Similarly, prices of diesel in Delhi, Kolkata and Chennai declined to Rs 71.56, Rs 73.42 and Rs 75.63 a litre, respectively.

The downward revision also comes on the back of multiple factors such as lower international crude oil cost and a recovery in the rupee against the US dollar.

The UK Brent crude has fallen to under $68 per barrel, from a recent high of over $86.

Earlier last month, the Centre announced a cut in excise duty by Rs 1.50 a litre.

Additionally, the state-owned oil marketing companies had been mandated to reduce the prices of petrol and diesel by one rupee per litre.

In a related development, the US recently softened its stand on Iran’s sanctions and allowed eight countries including India to continue importing oil from Iran temporarily.