Fuel prices across the country were reduced on Thursday after a decline in international oil prices. While this is the second price cut for diesel rates, petrol prices in India were cut for the first time this week after remaining unchanged for three straight days.
Retail prices of these two highly consumed petroleum products are reset every morning by state-owned oil marketing companies based on the international oil prices and exchange rates of the rupee against the US dollar.
The global benchmark for oil, Brent crude oil futures fell by 20 cents or 0.3 percent to $67.63 a barrel from its last close, while US West Texas Intermediate (WTI) futures dropped 0.4 percent or 23 cents to $59.18 per barrel. On Wednesday, they closed 0.2 percent and 0.9 percent lower, respectively.
The fall in the crude prices was a result of an unexpected increase in US inventories. Against analysts' expectation of a decrease by 1.2 million barrels, US crude inventories rose by 2.8 million last week according to the US Energy Information Administration.
Petrol prices per litre in New Delhi was reduced to by 5 paise to Rs 72.81. Diesel price was cut by 10 paise to Rs 66.39 per litre.
On Thursday, petrol in Mumbai was being sold at Rs 78.43 a litre, 5 paise lower than the previous day's price. It is also the highest price one can pay for petrol in an Indian city today. Diesel price per litre was reduced to Rs 69.54.
Petrol price in the South Indian city was also reduced by 5 paise to Rs 75.62/litre. Diesel price was cut by 11 paise to Rs 70.15 a litre.
Petrol price was cut by 4 paise to Rs 74.89 per litre in Kolkata and diesel rate was 10 paise lower than the previous day at Rs 68.18/ litre.