Fuel prices in the country were lowered on Friday across Indian cities, as per the data on state-owned oil marketer Indian Oil Corporation's (IOC) website. The rates have been cut despite the Indian rupee hitting an all-time low of 69.05 against the US dollar, due to the sharp weekly loss faced by international crude oil benchmarks Brent and US WTI. These benchmarks are heading for a 3.6 percent and 2 percent fall respectively for the week, even after a slight recovery on Friday morning.
In India, effectively from 6 am on Friday, petrol price per litre was priced at Rs 76.62 in Delhi, Rs 79.39 in Kolkata, Rs 84.06 in Mumbai and Rs 79.59 in Chennai. Diesel per litre, on the other hand, was sold at Rs 68.23 in Delhi, Rs 70.84 in Kolkata, Rs 72.44 in Mumbai and Rs 72.06 in Chennai.
Delhi was the only city that experienced price cut in fuel by 6 paise per litre on petrol and 12 paise per litre on diesel on Thursday. In other metro cities, the prices have been cut after a 3-day halt.
Despite the freedom to move the burden of fluctuating prices of crude oil and depreciation in Indian rupee to the final consumers, the state-owned oil retailers have begun taking signals from the government in making the changes. The price at which fuel is sold in India is not always a direct reflection of international market rates.
Global crude oil prices declined with Brent at around $72 a barrel on Thursday, after concerns of oversupply from oil producers like Saudi Arabia and its allies. There are also concerns about the lowering of demand for fuel in the world's two biggest economies and largest consumers of oil- China and the US, that could face a possible economic slowdown from their trade war.