With the rupee slowly strengthening against the dollar and a meltdown in the international crude oil rates, the prices of both petrol and diesel were not increased for the 24th day straight today. State-run oil marketing companies have decreased the price of petrol and diesel by 15 paise each.
Fuel prices saw an increase on 16th October. Since then daily prices have either remained the same or have decreased.
According to the latest rates, here are the fuel costs in major cities
Rs 78.06 in Delhi,
Rs 83.57 in Mumbai,
Rs 81.08 in Chennai,
Rs 78.69 in Bengaluru and
Rs 79.98 in Kolkata.
Rs 72.74 in Delhi,
Rs 76.22 in Mumbai,
Rs 76.89 in Chennai,
Rs 73.13 in Bengaluru
Rs 74.60 in Kolkata.
Since the middle of August, petrol and diesel prices were on an upswing, riding on high prices of crude oil, 80% of which is imported. The weakening rupee was another reason. The market trend has now reversed on both counts which has led to a consistent drop in fuel prices in India.
The rupee lost about 12.5% of its value against the dollar in 2018 so far. It is now contained below 73 from 74 plus rates.
On the other hand, International crude oil prices declined about 20% from their October high. Brent crude oil fell to its lowest since early April, which is down more than 18% since reaching a four-year high at the beginning of October.
Oil marketing companies decide the price of petrol and diesel at 6 am everyday after taking into account the value of the rupee against the dollar and a 15-day average of crude oil prices.
Petrol and diesel prices were touching record highs on October 4th. Petrol touched Rs 84 per litre in Delhi and Rs 91.34 in Mumbai whereas diesel was at Rs 75.45 in Delhi and Rs 80.10 in Mumbai.