Petrol and diesel prices in India got badly affected due to the massive surge in crude oil prices and since mid-August have been scaling new peak every other day. In its wake, the government had to reduce tax on both of the fuels and OMCs had been asked to absorb Rs. 1.5 on both of the fuel on a per litre basis.
Now, after the crude oil price has subsided to lows, petrol has again dropped down in price to from where it headed to a high. This said, petrol is now retailing at 3-month low in New Delhi, i.e. Rs. 76 mark in New Delhi while in other metros it is available for Rs 81.90 in Mumbai, Rs 79.31 in Chennai, Rs 76.99 in Bengaluru and Rs 78.33 in Kolkata.
Diesel is priced at a 2-month low and is selling at Rs. at Rs 71.27 in Delhi, Rs 74.66 in Mumbai, Rs 75.31 in Chennai, Rs 71.65 in Bengaluru and Rs 73.13 in Kolkata.
Off late due to a heavier tax imposed on diesel, in some of the cities, diesel is selling at a higher price than petrol. Also, the gap in the price of two commodities has narrowed down heavily from a difference of some Rs. 30, 7 years back to just a difference in single digit now.
Crude prices are down almost over 25% in the last month period.