New Delhi: Continuing its downward trend, petrol and diesel prices fell today, with prices cut by 11-16 paise in major cities. A litre of petrol today costs 70.20 in Delhi, 70.75 in Bengaluru, 75.80 in Mumbai, 72.82 in Chennai and 72.28 in Kolkata. Diesel, on the other hand, costs 64.66 in Delhi, 65 in Bengaluru, 67.66 in Mumbai, 68.26 in Chennai and 66.40 in Kolkata. Global oil prices are back near $60 dollar a barrel mark after falling sharply on Monday. Despite the supply cut announced by major oil exporters, concerns over global demand and turmoil in financial markets weighed on oil price. The OPEC-led group of oil producers last Friday announced a supply cut of 1.2 million barrels per day (bpd) in crude oil supply from January, measured against October 2018 output levels.

The retail selling price of petrol and diesel in India is dependent on the international prices of benchmark fuel and the rupee-US dollar exchange rate. India imports bulk of its oil requirement through imports.

Since hitting a peak in October, petrol and diesel prices have been on a decline in India. Since then global oil prices have dropped sharply from four-year highs of $86 a barrel while the rupee has rebounded from its lows of 74.48 against the US dollar. Petrol price had touched a record high of 84 per litre in Delhi and 91.34 in Mumbai on October 4. Diesel on that day had peaked to an all-time high of 75.45 a litre in Delhi and 80.10 in Mumbai.

From its October 4 highs, petrol prices are down 14-15 a litre while diesel prices are off 11-12 a litre.

Apart from global oil prices and the rupee-dollar exchange rate, the final price of petrol and diesel consumers pay at the pump depends on taxes levied by the centre and states, besides the dealer commission. Based on November 19 retail selling price of petrol in Delhi, Indian Oil on its website showed a break-up of prices: Price charged to dealers (excluding excise duty and VAT) 38.63, excise duty 17.98, dealer commission 3.64, VAT 16.27.