New Delhi: As the rupee gained and crude oil prices remained bearish, petrol and diesel prices, too, continued to decline today. Petrol and diesel prices dropped by 19 paise each today. This week’s crude and rupee rate trends, the two biggest factor determining fuel prices in India, indicate that petrol and diesel prices are going to ease further in the next few days. A litre of petrol today costs Rs 76.91 in Delhi, Rs 82.43 in Mumbai, Rs 77.52 in Bengaluru, Rs 79.87 in Chennai and Rs 78.85 in Kolkata.
Petrol, diesel prices continue declining trend. 5 things to know
Diesel, on the other hand, is priced at Rs 71.74 in Delhi, Rs 75.16 in Mumbai, Rs 72.12 in Bengaluru, Rs 75.82 in Chennai and Rs 73.60 in Kolkata. Fuel prices, at their lowest since September, had peaked to an all-time high in October. The rates have not been increased for over 30 days and fuel is cheaper by about 8% in India since October.
5 things to know about petrol, diesel price trends:
1. The price gap between petrol and diesel in major cities has narrowed over the past few months. A year ago, the price difference was Rs 11 in Delhi and Rs 16 in Mumbai, but the gap is now reduced to single digits.
2. In the three states, Goa, Gujarat and Odisha, petrol is cheaper than diesel. In Goa, diesel costs Rs 2 more than petrol and it costs about Re 1 more in Gujarat, Odisha and Port Blair.
3. Among Delhi, Gurgaon or Gurugram and Noida in NCR, Noida has the lowest fuel price because of lower sales tax or VAT imposed by the Uttar Pradesh government. In Gurgaon, petrol costs Rs 75.77 and diesel Rs 70.71 while the figure is Rs 76.91 and Rs 71.74 respectively in Delhi.
4. The international crude oil market, which has a direct bearing on petrol and diesel prices in India as about 80% of crude oil is imported, has failed to recover from a bearish outlook ever since it reached a four-year high in October on oversupply concerns. Crude oil prices have, however, risen in the last two days following expectations from the Organization of Petroleum Exporting Countries (Opec) to reduce supply.
5. The rupee, which had touched a record low of 74.48 per dollar on October 11, is now trading below 72. The higher the value of the rupee against the US dollar, the higher will be the import cost of crude oil and the retail price of fuel.