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.