Fuel prices were slashed for a sixth straight day on Tuesday across the four metro cities. The oil marketing companies (OMCs) cut rates of petrol and diesel by 10 paise per litre and 7 paise per litre, respectively, in Delhi. In the national capital, petrol was sold at Rs 81.34 per litre on Tuesday, according to Indian Oil Corporation (IOC). Petrol rates in Mumbai, Kolkata and Chennai stood at Rs 86.81, Rs 83.19 and Rs 84.53 respectively, with effect from 6 am on Tuesday.
Diesel, on the other hand, was sold at Rs 74.85 per litre in Delhi, while the price of diesel in Mumbai was reduced to Rs 78.46 per litre. Diesel rates in Kolkata and Chennai stood at Rs 76.70 and 79.15 respectively. Petrol and diesel rates are revised on a daily basis by oil-marketing companies on the basis of the rupee-dollar rate and global crude oil prices.
On Monday, all petrol pumps along with linked Compressed Natural Gas (CNG) dispensing units across the national capital were shut in protest against the Delhi government's refusal to cut Value Added Tax (VAT) on petrol and diesel.
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. However, Delhi government refused to reduce VAT on both petrol and diesel, as reported by news agency Press Trust of India (PTI).
Globally, oil prices dropped on Tuesday after Saudi Arabia said it could supply more crude quickly if needed, reassuring investors ahead of US sanctions on Iran's crude exports that start next month. Brent crude, the international benchmark, fell $1.51 a barrel to a low of $78.32, down 1.9 per cent and below its 50-day moving average for the first time in two months, before recovering a little to around $78.40 by 09:35 GMT or 3:05 pm IST.
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