Oil marketing companies today slashed petrol and diesel prices amid a decline in global oil prices. Petrol prices today saw a cut of around 20 paise a litre in top cities while diesel prices witnessed a fall of around 15 paise. In Delhi, petrol today retailed at 69.55 a litre, in Kolkata 71.65, in Mumbai 75.18, in Chennai 72.16, in Bengaluru 70.11 and 69.6 in Noida. This is the lowest price of petrol in Delhi so far this year. Similarly, in Delhi, diesel today retailed at 63.62 a litre, in Kolkata 65.37, in Mumbai 66.57, in Chennai 67.16, in Bengaluru 63.97 and 63.09 in Noida.

Domestic petrol and diesel prices have been on a downtrend since hitting record highs in October. Petrol prices had hit a record high of 84 per litre in Delhi and 91.34 in Mumbai on October 4 when crude prices were hovering around $85 a barrel. Diesel had also peaked at an all-time high of 75.45 a litre in Delhi and 80.10 in Mumbai. Since then, global oil benchmark brent crude has slumped from over $85 a barrel to around $53 a barrel now on concerns over global growth and oversupply. Tracking a fall in global oil prices, domestic petrol prices are now down 14 to 16 a litre in top cities since October 4 highs. Similarly, diesel prices are down 12 to 13.5 a litre.

And so far this month, domestic petrol prices are off around 3.5 a litre while diesel prices are down 4 a litre. In India, the retail price of petrol and diesel depend on global crude oil price and rupee-dollar exchange rate as well as central and state level taxes.

For example, on 19 November 2018 retail price of petrol was 76.52 a litre in New Delhi. It was based on brent price of $71.22 a barrel (cost & freight) and dollar-rupee exchange price of 72.58, according to Indian Oil website. The price charged to dealers was 38.63 while excise duty was 17.98, dealer commission 3.64 and VAT at 16.27.