State-owned oil companies on Sunday announced yet another cut in the price of petrol by 91 paise per litre and diesel by 84 pase a litre on the back of falling global oil prices. The revised prices will be effective from Monday.
After the revision, petrol will cost Rs 63.33 per litre in Delhi, Rs 70.33 a litre in Kolkata, Rs 70.95 in Mumbai and Rs 66.05 in Chennai. Similarly, diesel will cost Rs 52.51 in Delhi, Rs 57.08 a litre in Kolkata, Rs 60.11 a litre in Mumbai and Rs 55.93 a litre in Chennai.This is the seventh reduction in the price of petrol since August and the third in that of diesel since its decontrol in October. Petrol price was last cut by Rs 2.41 a litre on November 1 and diesel by Rs 2.25 a litre.
Diesel price was for the first time in more than five years slashed on October 19, by Rs 3.37 a litre, when the government decided to deregulate the fuel. Prior to the October 19 reduction, diesel rates were last cut in January 2009.
Since June, global oil prices have fallen by about 40% and have fallen from the highs of $115 as demand from the world’s largest consumer—US fell on the back of its increasing shale oil output.
Last Friday, global crude oil prices fell below $70 per barrel following the decision by the cartel of oil producing nations—the Organization of the Petroleum Exporting Countries (OPEC) of not implementing any production cut.
Any further fall in global oil prices ---which analysts and market experts predict could plunge to $60 a barrel will benefit oil importing nation like ours. Alongside, the government had on November 13 hiked excise duty on petrol and diesel by Rs 1.50 per litre. However, there was no increase in the retail price of the two fuels despite this duty hike.