Petrol, Diesel Prices Cut As Crude Oil Slips To 3-Month Low On Coronavirus Scare

Fuel prices in India were lowered for the sixth consecutive day on Tuesday as international oil rates continued to slide over fears of the coronavirus outbreak in China.

Petrol prices per litre were cut by 11 paise to Rs 73.60 in New Delhi, Rs 76.22 in Kolkata, Rs 79.21 in Mumbai and Rs 76.44 in Chennai. Diesel prices per litre were reduced by 13 paise to Rs 66.58 in New Delhi, Rs 68.94 in Kolkata, Rs 69.79 in Mumbai and Rs 70.33 in Chennai.

International oil benchmark Brent crude was down by 0.3 percent to $59.17 per barrel on Tuesday. On Monday, the index had slipped to its lowest in three months to $58.50.

Fuel prices in India are based on international oil price movements and rupee's exchange rate.

Chinese health authorities said that the coronavirus outbreak has killed 106 people and infected 4,515 raising fears across the globe. Countries, including the US, have issued warnings against travel to China, leaving millions of travellers stranded at the biggest holiday in the Chinese calendar.

Investors in oil are concerned that travel restrictions and fall in economic growth will dampen demand for crude and its products while supply remains high.

There are concerns that spread of infection, transportation disruptions, cancellation of group tours from China and an extension in the Lunar Holiday will likely hurt the global economy. If the situation takes longer to subside, it will hurt exports, output and corporate profits of companies that are impacted by production and consumption in China.