Petrol and diesel prices across the country witnessed further dip on Sunday, bringing citizens much needed relief from skyrocketing prices with the fourth reduction in as many days.
The petrol price in Delhi was today slashed by Rs 0.25, bringing it to Rs 81.74 per litre. Diesel price has now been revised to Rs 75.19 per litre with a dip of Rs 0.17. Similarly, petrol and diesel prices in Mumbai are now at Rs 87.21 per litre, slashed by Rs 0.25, and Rs 78.82 per litre, slashed by Rs 0.18, respectively.
The price cut follows international crude oil prices trading near the lowest level in a month. The domestic fuel prices depend upon the international fuel prices on a 15-day average and the value of the Indian rupee.
Petrol and diesel prices were reduced for the first time in over two months on Thursday because of a drop in the cost of production, according to state-owned oil firms.
The rates were reduced by a minimum Rs 2.50 per litre across the country on October 5, when the government cut excise duty on petrol and diesel by Rs 1.50 a litre and asked oil PSUs to subsidise the fuels by another Re 1 a litre. The reduction in BJP-ruled states was more as they matched this cut by an equivalent reduction in local sales tax or VAT.
Prior to Thursday's cut in rates, diesel price had risen by Rs 2.74 per litre since October 5 to more than wipe away the excise duty cut and oil firm subsidy. Petrol price had during this period risen by Rs 1.33 a litre.
Before the October 5 price cut, petrol in Delhi had hit an all-time high of Rs 84 per litre and diesel was at record Rs 75.45. This came down to Rs 81.50 per litre for petrol and Rs 72.95 in case of diesel.
In Mumbai, petrol had hit a peak of Rs 91.34 hit on October 4 and diesel was sold at a record high of Rs 80.10.
The BJP-government at the centre had raised excise duty on petrol by Rs 11.77 a litre and that on diesel by Rs 13.47 a litre in nine instalments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.
(With PTI inputs)
