New Delhi: State-run fuel retailers reduced petrol prices by 34 paise and diesel by 37 per litre today. Petrol now costs 72.53 per litre in Delhi, 78.09 in Mumbai, 73.09 in Bengaluru, 75.26 in Chennai and 74.55 in Kolkata.

On the other hand, diesel is priced at 67.35 in Delhi, 70.50 in Mumbai, 67.70 in Bengaluru, 75.26 in Chennai and 74.55 in Kolkata.

Both crude oil and petrol, diesel prices had peaked in October, but fell thereafter and also for the whole of November. In case the Organization of Petroleum Exporting Countries (OPEC) decides to reduce oil production during its meeting on December 6, the price trend will see another round of U-turn.

When crude prices hit at a four-year high in the beginning of October, analysts had predicted rates of around $100. But by the end of November, prices nosedived to around $50 in the futures market, the worst crash since 2015.

Read: Petrol is now cheaper than diesel in these cities

Following a supply glut and US President Donald Trump’s waiver to Iranian crude oil importers, November was one of the worst months for the global crude oil market in a decade. All eyes are now on the outcome of the OPEC meeting on December 6, in which Russia could team up with Saudi Arabia to curb output. Trump wants producers to lower prices even further.

According to a recent Bloomberg report, oil prices are at an economic sweet spot. Prices are not so high that they are a burden on consumers and businesses, and not so low as to bankrupt energy companies and strain the finances of major oil exporters such as Saudi Arabia and Russia.

In India, fuel prices reached an all-time high on October 4 when petrol hit 84 per litre in Delhi and diesel 75.45 per litre. The decline began the day after when the finance ministry reduced the excise duty, asked state governments to cut sales tax or VAT, and instructed state-run oil retailers to bear a Re 1 loss on every litre of petrol and diesel sold. Cumulatively, petrol and diesel prices declined by 5 in several states from October 5. This was followed by a drop in crude oil rates, which brought retail prices down further in India.