Petrol and diesel prices were cut sharply today, according to Indian Oil website. The price of fuel has been on a declining trend over past 15 days. In Delhi, petrol prices were cut by 30 paise to 73.86 a litre, the lowest rate in over two months. Diesel prices were lowered by 35 paise to 66.96 a litre in Delhi today. Domestic petrol and diesel prices are reviewed by oil marketing companies on a daily basis.

In Mumbai, petrol today retailed at 79.47 a litre and diesel at 70.19 a litre. In Chennai, petrol prices were cut to 76.71 a litre and diesel to 70.73 a litre. In Kolkata, petrol and diesel prices were at 76.48 a lite and 69.32 a litre respectively.

Retail fuel prices in India is dependent on the international crude prices and the rupee-US dollar exchange rate. India imports almost 80% of its oil requirements.

In global markets, crude registered its worst weekly decline in more than a year on concerns that the spread of virus outbreak in China will hurt fuel demand.

On Friday, Brent futures sank 2.2% to $60.69 a barrel. China has expanded travel restrictions for about 40 million people in an attempt to halt contagion.

Analysts say that while this is not the first time global oil markets contend with an epidemic threatening demand, the current supply environment could worsen the situation.

A hint of any economic slowdown could push down crude prices sharply because the market is so oversupplied, they say. Brent futures fell 6.4% this week.

Crude oil prices have also been weighed down by the cut in global growth estimate by the IMF. Crude oil demand is likely to remain subdued due to slower growth projection in the larger economies, said Abhishek Bansal, chairman of Abans Group of Companies. (With Agency Inputs)

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