Petrol, Diesel Prices Ease Ahead Of Diwali: 10 Things To Know

The oil marketing companies (OMCs) marginally slashed fuel rates on Tuesday, a day ahead of Diwali, across the four metro cities. Petrol and diesel prices were cut by 14 paise per litre and 9 paise per litre, respectively, in Delhi. In the national capital, petrol was sold at Rs 78.42 per litre on Tuesday, according to Indian Oil Corporation (IOC). Petrol rates in Mumbai, Kolkata and Chennai were decreased to Rs 83.92 per litre, Rs 80.33 per litre and Rs. 81. 46 per litre respectively, with effect from 6 am on Tuesday.

Diesel prices stood at Rs 73.07 per litre, Rs.76.57 per litre, Rs 74.93 per litre and Rs 77.24 per litre in Delhi, Mumbai, Kolkata and Chennai respectively on Tuesday.

Here are 10 things to know about petrol, diesel prices on Tuesday:

1. Petrol and diesel prices have been on the decline since October 18. 

2. Earlier, petrol price had touched a record high of Rs 84 per litre in Delhi and Rs 91.34 in Mumbai on October 4. Diesel on that day had peaked to Rs 75.45 a litre in Delhi and Rs 80.10 in Mumbai.

3. Fuel prices had started to climb from August 16. Between August 16 and October 4, petrol price was hiked by Rs 6.86 per litre and diesel by Rs 6.73, as reported by news agency Press Trust of India (PTI).

4. On October 4, the Central government announced a cut of Rs. 2.50 a litre each for petrol and diesel and urged state governments to match the reduction to provide relief from high fuel prices.  After the central government's decision, several states followed the suit. 

5. Subsequent to this, the petrol price came down to Rs 81.50 per litre in Delhi and diesel to Rs 72.95 a litre on October 5. In Mumbai, rates fell to Rs 86.97 per litre for petrol and Rs 77.45 in case of diesel. 

6. However, as the international oil prices continued to rise, price of petrol and diesel in Delhi increased to Rs 82.83 and Rs 75.69 on October 17. In Mumbai, rates touched Rs 88.29 a litre for petrol and Rs 79.35 for diesel. 

7. But since then, international oil prices have been falling and rupee has also appreciated, resulting in decline in retail rates. On Tuesday, international Brent crude oil futures were down 48 cents, or 0.7 per cent, at $72.69 a barrel.

8. The retail selling price of petrol and diesel is dependent on the international prices of benchmark fuel and the rupee-US dollar exchange rate. This is because a large proportion of country's requirement is met through imports.

9. State-run oil marketing companies Indian Oil, Bharat Petroleum and Hindustan Petroleum revise fuel prices with effect from 6 am on a daily basis. 

10. Government allowed revision of fuel rates on a daily basis since mid-June last year to reflect changes in costs instantly.