New Delhi: As Brent crude oil prices keep falling, the price of petrol has now touched a month’s low of ₹ 81.10 in Delhi and ₹ 86.58 in Mumbai. State-run oil marketing companies dropped petrol prices by 15 paise and diesel prices by 5 paise per litre.
Petrol prices had hit an all-time high of ₹ 84 per litre in Delhi and ₹ 91.34 in Mumbai on October 4 before the declining trend began. A litre of diesel now costs ₹ 74.80 in Delhi and ₹ 78.41 in Mumbai.
Here are 5 things to know about petrol and diesel price trends:
1. Narrowing the gap between the price of petrol and diesel, the decrease in petrol prices has been sharper than that of diesel. In Delhi, petrol costs just ₹ 6.3 more than diesel. In Mumbai the price gap is ₹ 8.17, Chennai ₹ 5.19, Kolkata ₹ 6.4.
2. The price gap is in sharp contrast to that of ₹ 20 in 2012. Even in June 2017, the petrol-diesel price gap was ₹ 11 in Delhi and ₹ 16.8 in Mumbai. In Odisha, petrol is already cheaper than diesel. Cheaper diesel makes diesel cars more attractive to buyers.
Also read: The cheapest and most expensive places to buy petrol, diesel in India
3. Under pressure from sharp selloffs in stock markets, global crude oil prices are down by around 1% today. Brent crude oil futures were trading below $75 a barrel.
4. State-run oil retailers are already bearing a loss of Re 1 on every litre of petrol and diesel sold in the country after Union finance minister Arun Jaitley asked them to bear the cut and provide relief to the common man.
5. Fuel retailers in Delhi are complaining that their sales have declined after the neighbouring Uttar Pradesh and Haryana lowered sales tax or VAT on petrol and diesel. Since the Delhi government did not follow suit, people are going to the neighbouring cities of Noida, Gurgaon and Ghaziabad to buy cheaper fuel. The price gap is in the ₹ 1-2 range.