You may have to pay as much as Rs 8 per liter less for petrol and diesel from next week, as per media reports. While some reports said that petrol and diesel could get cheaper by as much as Rs 5-6 in the next week itself, Hindustan Times went on to claim fuel prices could drop by as much as Rs 8 if the rupee-dollar exchange rate is factored in.
Following the breakdown of OPEC+ talks on production cuts and Saudi Arabia’s decision to pump more oil into the market as a retaliatory step, the global oil market went into a tailspin with crude prices tumbling more than 30 per cent to just about $35 a barrel, before recouping some of the losses.
The drop in crude oil prices, however, did not immediately reflect in retail prices in India. As per reports, retail prices of the day are based on the average price of benchmark international fuel of the preceding fortnight. So the drop in prices will likely get reflected in retail prices over the next 7-10 days.
However, the benefits may not transfer to consumers if governments decide to raise excise duty, like the Karnataka govt did recently.
Currently, excise duty, VAT and dealer commission account for about half of the retail prices of petrol and diesel in India.
Fuel prices, which crossed Rs 90 mark in 2019, have been seeing a continuous fall ever since.
Meanwhile, fuel prices were further reduced today due to slump in demand after the coronavirus was declared pandemic. The price of petrol was reduced by 15-16 paise and that of diesel by 12-13 paise across all major cities in the country.
Petrol now costs Rs 70.14 per litre in Delhi, Rs 75.84 per litre in Mumbai, Rs 72.83 a litre in Kolkata and Rs 72.86 per litre in Chennai after the price cut.
Similarly, diesel costs Rs 62.89 a litre in Delhi, Rs 65.84 a litre in Mumbai, Rs 65.22 a litre in Kolkata and 66.35 per litre in Chennai, according to Indian Oil Corporation website.Share This