Fuel prices across the country were revised lower for the thirteenth straight day. Petrol rate per litre was down by an average of 20 paise to Rs 76.58 in Delhi, Rs 79.25 in Kolkata, Rs 84.41 in Mumbai and Rs 79.48 in Chennai.
Diesel rate per litre was down by 15 paise to Rs 67.95 in Delhi, Rs 70.50 in Kolkata, Rs 72.35 in Mumbai and Rs 71.73 in Chennai.
International oil prices were dragged down on Monday by an increase in output from the US and Russia. US drilling activity was at its highest level since March 2015, while Russian output was also on a rise.
Global oil production is mainly controlled by the OPEC (organization of petroleum exporting countries) and they had collectively withheld their outputs to avoid crude prices from falling sharply. The members include Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, UAE and Venezuela.
An unexpected crisis in oil production in Venezuela and re-imposition of tariffs by the US on Iran put the prices of the internationally traded oil prices under pressure. The increase in US and Russian production (both non-OPEC members) have eased the rates and will now also impact the decision to be taken in the scheduled OPEC meeting on 22-23 June.