Fuel prices were cut for the sixth straight day as per state-owned marketer IOC's (Indian Oil Corporation Limited) notification. Petrol was eased by 15 paise in metro cities to Rs 77.96 per litre in Delhi, Rs 80.60 in Kolkata, Rs 85.77 in Mumbai and Rs 80.94 in Chennai. Diesel prices were down by 14.5 paise on an average to Rs 68.97 per litre in Delhi, Rs 71.52 in Kolkata, Rs 73.43 in Mumbai and Rs 72.82 in Chennai.
International crude oil prices had also dipped on Monday after an increase in US oil output and expectations of a rise in production by the OPEC (Organization of the Petroleum Exporting Countries). Global benchmark Brent was down by 0.16 percent to $76.67 in early morning trade.
The US reported a record increase in its production last week, edging closer to that of Russia. It has raised concerns over the widening gap between rates the WTI futures ($65.87 in morning trade) and that of Brent which is currently around $11. This could put pressure on the OPEC to make a decision to increase their production when they meet on June 22.
Since May 30, petrol prices in India have been reduced by 46 paise per litre while diesel has seen a 33 paise drop in the national capital. Prices across the country will more or less have a similar trend.
Kerala consumers, however, had an additional one rupee drop effective from June 1, as their state-government decided to bear the burden by reducing VAT collected on petrol and diesel last week.