Fuel prices in the country were cut for the third straight day on Saturday after international oil benchmarks posted their sixth straight weekly decline on Friday. Sale prices of the two commonly used petroleum products are set by Indian oil marketing companies every morning at 6 am based on global market rates.
Petrol prices per litre were lowered by 19 paise to Rs 76.91 in New Delhi, Rs 78.85 in Kolkata, Rs 82.43 in Mumbai and Rs 79.87 in Chennai. Diesel prices per litre were reduced to Rs 71.74 in New Delhi, Rs 73.60 in Kolkata, Rs 75.16 in Mumbai and Rs 75.82 in Chennai.
The two international benchmarks for oil posted their sixth weekly decline on Friday despite a sharp recovery. US West Texas Intermediate ended its session at $56.46 a barrel and Brent closed at $66.76 per barrel. The former hit its eight-month low on Tuesday causing it to end the week 5 percent lower.
The Organization of Petroleum Exporting Countries (OPEC) will be meeting on 6 December in Vienna to discuss their production policy for the following six months. The market expects the producers to reduce output as concerns of an oversupplied market hovers.
The US launched sanctions on Iran this month and has asked international buyers to reduce its purchases. Iranian crude exports have fallen sharply in the past few months after the US decided to impose sanctions on the oil-rich country but the other oil producers significantly increased their supply to more than compensate for the loss. As inventories continue rising, it has been putting pressure on oil prices globally due to an oversupply.