Petrol and diesel prices on Friday were unchanged for the second day in a row. The fuel prices across the country have recently been on the decline over the past few weeks. The most recent change to the rates was on September 1, 2021. It was then, that the petrol and diesel rates across major metro cities were slashed. The rates were reduced by 10 to 15 paise for petrol, while diesel rates had dropped by 14 to 15 paise. Prior to that change, towards the end of August, fuel rates were stagnant for an entire week.
In the nation’s capital, Delhi, the price of petrol stood at Rs 101.34 per litre. In the financial capital, Mumbai, the petrol rate dropped down to Rs 107.39 per litre where it has remained since. This marked a 13 paise drop in rates for the metro city. Moving to the south, the city of Chennai had last seen its prices slashed by 12 paise, which left the final price of Rs 99.08 per litre. In Kolkata, motorists continue to pay Rs 101.72 per litre of petrol, which is 10 paise less than they were paying before the price cut. Citizens in Bangalore saw a fresh price of Rs 104.84 per litre of petrol, which was a 14 paise cut.
Coming to diesel prices, Delhi saw the fuel rate drop by 15 paise, which left the diesel rate at Rs 88.77 per litre in the city. In Mumbai, the diesel rate continues to stagnate at Rs 96.33 per litre, which marked a 13 paise drop. Chennai and Kolkata continue to carry a price point of Rs 93.38 per litre and Rs 91.84 per litre respectively. In Bangalore, motorists are shelling out Rs 94.19 per litre of diesel.
The fuel prices in India vary from state to state on account of state-wise taxation. The majority of the end retail price comes from the excise duty, value-added tax (VAT) and central government taxes. The national-level calculations aside, the base price of fuel in the country is also dependent on the international price of crude oil per barrel. More often than not, the benchmark for this is Brent Crude oil futures. Another aspect to consider is the exchange rate of the Dollar to Rupee.
Oil prices rose more than $1 a barrel on Thursday, according to a report by Reuters. This caused rebounding on optimism about the global economic growth despite the coronavirus pandemic. Keep in mind that this comes after US crude inventories fell more than anticipated, as the report mentioned.
Brent crude ended up $1.44, or 2 per cent, leaving the final price at $73.03 a barrel. West Texas Intermediate (WTI) crude settled up at $1.40, or 2 per cent higher which left the price at $69.99 a barrel, according to Reuters. It was also mentioned that the rally briefly pushed the US crude futures above the 50-day moving average for the first time in months. This indicated a good sign for investors. Overall, there were signs that the demand was expected to rise as supplies declined. It should be noted that crude oil prices had previously been slipping as investor confidence took a hit in the wake of the Delta variant of Covid-19 in earlier weeks.