NEW DELHI : As crude oil rates recorded the biggest weekly drop since July following easing of tensions between US and Iran, petrol and diesel prices fell by 10 paise a litre and 5 paise a litre, respectively. Fuel prices had fallen by a similar rate yesterday too after consecutive hikes earlier this month.

In New Delhi, a litre of petrol today costs 75.80 and diesel 69.06. In Mumbai, a litre of petrol comes at a price of 81.39 a litre and diesel 72.42 a litre. If you are in Bengaluru, you pay 78.34 for petrol and 71.36 for diesel. In Chennai, petrol costs 78.76 and diesel 72.98. Those in Hyderabad will have to pay 80.60 for petrol and 75.30 for diesel. In Gurgaon, you pay 75.08 for petrol and 67.89 for diesel.

Petrol, diesel prices saw a big spike earlier this month following a surge in crude oil rates due to three major reasons -- easing of trade war tensions between US and China, the decision of OPEC and its allies to cut oil production, and the increasing conflict in the Middle East.

As prospects of a US-Iran war waned, oil prices are now back where they were in mid-December. Brent crude was down 13 cents, or 0.2%, at $64.85 per barrel at 0120 GMT. WTI was also down 9 cents, or 0.2%, at $58.95 a barrel.

Global benchmark Brent touched a near four-month high above $70 before ending last week below $65, although the situation in the Middle East remains tense.

International Energy Agency (IEA) Executive Director Fatih Birol has said that he doesn't see a major spike in crude oil rates as there is an excess supply of about 1 million barrel per day, enough to keep a lid on prices.

Back in India, petroleum and natural gas minister Dharmendra Pradhan has said that the volatility in crude oil prices is a source of deep concern for the India, which imports 84% of its oil requirements. To reduce dependency on crude oil, India plans to have 20% ethanol blending in petrol and 5% bio-diesel in diesel by 2030.

Petroleum ministry data shows that India's consumption of diesel inched down 0.7% year-over-year to 7.34 million tonnes in December. Sales of petrol increased 3.2% from a year earlier at 2.47 million tonnes.

(Agency inputs)

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