New Delhi: With the crude oil showing little hopes of coming out of a bearish market this month despite the producers’ cartel Organisation of the Petroleum Exporting Countries (OPEC) deciding in favour of a supply cut, petrol and diesel prices continue to tumble in India today. Petrol price was down by 24 paise and diesel by 27 paise. A litre of petrol now costs ₹ 70.31 a litre in Delhi, ₹ 70.85 in Bengaluru, ₹ 75.90 in Mumbai, ₹ 72.92 in Chennai and ₹ 73.37 in Kolkata.
Diesel, on the other hand, is priced at ₹ 64.82 in Delhi, ₹ 65.15 in Bengaluru, ₹ 67.81 in Mumbai, ₹ 68.41 in Chennai and ₹ 66.55 in Kolkata. Price chart analysis shows that during the last 45 days, both petrol and diesel prices are down by ₹ 10 per litre. It was on October 4 when fuel prices had peaked to an all-time high in India. Petrol was then selling for ₹ 84 a litre in the retail market. Since then, both excise duty and crude oil rates have fallen down.
Read: Petrol is now cheaper than diesel in these cities
According to the Petroleum Planning & Analysis Cell, crude oil’s FOB (Freight on Board) price was $59.26 a barrel on Friday while the rupee exchange rate against US dollar was 70.57. State-run oil retailers take these two key factors into account while calculating the retail selling price of petrol and diesel in India.
International Brent crude oil futures were up by 0.5% to around $62 per barrel while US West Texas Intermediate (WTI) crude futures were weaker dropping 11 cents from their last settlement to $52.50 per barrel.
Oil prices have been pulled down sharply since October by signs of an economic slowdown, with Brent losing almost 30% in value.
Oil prices had surged on Friday after the OPEC and some non-OPEC producers including heavyweight Russia announced they would cut oil supply by 1.2 million barrels per day (bpd), with an 800,000 bpd reduction planned by OPEC members and 400,000 bpd by countries not affiliated with the group.
A Reuters report said despite the supply cut, the outlook for next year remains muted on the back of an economic slowdown.