Oil marketing companies reduced petrol prices in the key metro cities after keeping them unchanged for three consecutive days. In the national capital, petrol price was cut by 15 paise to Rs 101.19 per litre, from the previous level of Rs 101.34 per litre.
Similarly, petrol prices in the other key cities of Mumbai, Chennai and Kolkata were reduced to Rs 107.26, Rs 98.96 and Rs 101.62 a litre, respectively, down from the previous levels of Rs 107.39, Rs 99.08 and Rs 101.72 a litre.
In line with petrol prices, diesel prices were also lowered on Sunday. Price of the fuel in Delhi, Mumbai, Chennai and Kolkata stood at Rs 88.62, Rs 96.19, Rs 93.26 and Rs 91.71 per litre.
Under the pricing formula adopted by oil companies, rates of petrol and diesel are to be reviewed and revised by them on a daily basis. The new prices become effective from morning at 6:00 am.
The daily review and revision of prices is based on the average price of benchmark fuel in the international market in the preceding 15-days, and foreign exchange rates.
Fuel consumers can expect fuel prices to get some more relief by way of a cut in days ahead as global oil is expected to remain soft.
Oil cartel OPEC and its allies have agreed to gradually raise production levels that should prevent upward price movement. The concerns on demand due to the pandemic are also affecting oil prices.
After touching $74 a barrel mark last week, benchmark Brent crude is now around $72 a barrel now.