New Delhi: On the back of falling crude oil prices, state-run oil marketing companies slashed the prices of petrol and diesel by 17 paise and 15 paise, respectively. This is the fourth straight week when fuel prices have been cut. A litre of petrol now costs ₹ 77.56 in Delhi, ₹ 83.07 in Mumbai, ₹ 80.56 in Chennai, ₹ 78.18 in Bengaluru and ₹ 79.49 in Kolkata.
A lower sales tax or VAT of 27% has made petrol the cheapest across metro cities. Diesel, on the other hand, is priced at ₹ 72.31 in Delhi, ₹ 75.76 in Mumbai, ₹ 76.43 in Chennai, ₹ 72.70 in Bengaluru and ₹ 74.17 in Kolkata. During the last 30 days, petrol and diesel prices have dropped more than 10%. The decreasing trend began when Union finance minister Arun Jaitley announced a ₹ 1.5 cut in excise duty and also asked state-run oil companies to bear a loss of Re 1 on every litre of petrol and diesel sold in India. The ₹ 2.5 cut was followed by another round of ₹ 2.5 cut in several BJP-ruled states that decided to reduce VAT to ease price pressure on the common man.
Also read: The cheapest and most expensive places to buy petrol, diesel in India
Given the way international crude oil prices are behaving now, it is unlikely that petrol and diesel prices will breach the October 4 record when petrol had climbed to ₹ 84 per litre in Delhi and ₹ 91.34 in Mumbai while diesel was at ₹ 75.45 in Delhi and ₹ 80.10 in Mumbai.
Oil prices are down by about 18% from a 2014 high reached early in October. During the day, however, crude oil prices jumped more than 1.5% on Monday after top exporter Saudi Arabia announced a supply cut in December and other producers also considered reductions heading into 2019.
Front-month Brent crude futures, a benchmark for global oil prices, were at $71.59 per barrel, up 2% from their last close.