After successive rate cuts for more than a month, fuel oil is now available at its lowest price this financial year. With a rate cut of 50 paise, petrol in all the 4 metros is selling at the cheapest rate in FY19. A litre of petrol costs Rs 73.57 in Delhi, Rs 79.12 in Mumbai, Rs 74.15 in Bengaluru, Rs 76.35 in Chennai and Rs 75.57 in Kolkata.
A litre of diesel costs Rs 68.49 in Delhi, Rs 71.71 in Mumbai, Rs 68.85 in Bengaluru, Rs 72.34 in Chennai and Rs 70.34 in Kolkata.
The sharp cut to the tune of 8% in fuel oil prices is on the back of more than 25% decline in the price of international crude oil plus VAT rate cut across few of the states coupled with reduction in excise duty.
The rupee is also now showing signs of recovering and from an all-time high of 74 level is trading close to 70 level.
And further more the prices of both petrol and diesel shall continue to decline given the method using which fuel is priced in India. Moreover, the market participants are now closely eyeing OPEC meet scheduled for December 6, where decision can be taken to cut supply and hence increase prices.