Petrol and diesel have seen prices fall for the fifth consecutive day on Monday. As per the website of Indian Oil Corporation, petrol and diesel is priced at at Rs 83.07 per litre and Rs 75.76 per litre, respectively in Mumbai. While in Delhi, Kolkata and Chennai petrol is being sold for Rs 77.56 per litre, Rs 79.49 per litre and Rs 80.56 per litre, respectively. Diesel in these metro cities is priced Rs 72.31/litre, Rs. 74.17/litre and 75.76 per litre, respectively75.76 per litre, respectively.
In the last 27 days, price of petrol and diesel has reduced by over Rs. 5.22 per litre and Rs 3.59 per litre, respectively, in the financial capital of India (Mumbai) due to decrease in international crude oil rates. Notably, the decline in fuel prices is much faster in comparison to its spike recorded since mid-August.
India since mid-June last year is following dynamic model of oil pricing wherein fuel price is revised on a daily basis at 6:00 am and is based on international fuel prices on a 15-day average plus the rupee value. Further, fuel prices vary across places due to different local taxes. Currently petrol and diesel do not fall within the ambit of GST.
To provide relief to consumers in the wake of sharp hike in auto fuel prices, the Centre last month announced a cut in excise duty of Rs. 1.5 per litre. Also, the state-run OMCs were mandated to reduce the fuel price of both petrol and diesel by Rs. 1/litre each.
Also energy minister of Saudi Arabai as per his remarks on Sunday eyes to decrease the supply of oil to the world markets by as much as 0.5 million barrels per day in the month of December. This is being sought as the OPEC power faces uncertainty as it attempts to persuade other oil producing nations to agree to a coordinated output reduction.