Petrol and diesel prices were slashed on Tuesday for the second time in a week on the back of softening international crude prices. After Tuesday’s rate revision, petrol prices were cut by 19-22 paise while diesel prices were reduced by 21-23 paise across the country.
After the revision, a litre of petrol in Delhi will cost Rs 90.56, down 22 paise as against Rs 90.78 on Monday. Diesel in the national capital became cheaper by 23 paise to Rs 80.87 a litre as compared to Rs 81.10 on Monday.
Petrol rates have also dropped in other major cities including Kolkata ( ₹90.77), Mumbai ( ₹96.98), Chennai ( ₹92.58). Meanwhile, diesel price in Mumbai have now come down to ₹87.96. It has also dropped in Chennai to Rs 85.88 and in Kolkata to 83.75.
Oil companies had last cut petrol and diesel prices on March 25 by 21 paise and 20 paise, respectively. The second cut in a week is an indication that if global oil prices fall further, OMCs are likely to pass on the benefit to consumers.
However, the bigger reason behind India’s exorbitant petrol and diesel rates is the high fuel tax levied by the Centre and state governments. It may be noted that nearly 60% of the price of petrol and diesel in India comprises taxes.
Meanwhile, crude oil fell 1% on Monday, after a container ship that has blocked the Suez Canal for nearly a week was refloated and traffic in the waterway resumed.
Prices also dropped as fuel demand in Europe remained weak after countries renewed lockdowns to curb a new wave of coronavirus infections.