Fuel prices in the country have been on a continuous downslide owing to international trends. Today marks the 20 straight session of price cut of the two petroleum products in India.
Petrol price per litre was cut by 17 paise to Rs 77.89 in New Delhi, Rs 83.40 in Mumbai, Rs 79.81 in Kolkata and Rs 80.90 in Chennai. Diesel rate per litre was also lowered to Rs 72.58 in New Delhi, Rs 76.05 in Mumbai, Rs 74.44 in Kolkata and Rs 76.72 in Chennai.
These rates are revised every day based on the international prices for crude. In the global market, US crude prices have been declining for 10 consecutive days (as of Friday), its longest losing streak since mid-1984. Crude futures slumped for the fifth straight week as increasing world oil output becomes a growing concern amoung traders whose outlook for the commodity's demand has deteriorated.
Biggest suppliers of oil, that is, Saudi Arabia and the US have increased their production levels for quite some time now and while the Iran supplies were expected to cut this month, the waivers on sanctions to 8 countries by the Trump administration helped it add on to the total output.
The markets are showing a sharp reversal of trends in a month. At the beginning of October, crude was at its four-year high from worries over potential shortages that the US sanctions on Iran would bring.