State-run oil companies on Sunday cut petrol price across India for the first time after the rate remained unchanged at record-highs for 35 days. Diesel price was also decreased after a one-day pause.
The petrol and diesel prices were cut down by 20 paise each in Delhi. The price cut revised the petrol price to Rs 101.64 per litre, while diesel was sold at Rs 89.07 per litre in the national capital on the day.
The fuel prices witnessed a similar trend across the country. In Mumbai, petrol price was decreased to retail the fuel at Rs 107.66, 17 paise down from the previous price of Rs 107.83. The financial hub, on May 29, became the first metro in the country where petrol was being sold for more than Rs 100 per litre.Diesel price also dropped by 20 paise and sold at Rs 96.64 per litre in Maharashtra’s capital.
The petrol and diesel saw price cut of 15 and 19 paise, respectively in Kolkata. With the revision, a litre of petrol was sold at Rs 101.93 and diesel Rs 92.13 in the West Bengal’s capital.
Chennai retailed a litre of petrol at Rs 99.32 with a price cut of 15 paise. The DMK government in Tamil Nadu has recently announced a tax cut of Rs 3 on petrol per litre. Diesel price decreased by 18 paise to bring down the fuel price to Rs 93.66 per litre in Tamil Nadu’s capital.
The price cut follows international oil prices tumbling to their lowest level since May after the US Federal Reserve signalled it was set to start tapering asset purchases within months, hurting commodities and lifting the dollar.
India is near 85 percent dependent on imports to meet its oil needs and so benchmarks local fuel rates to international oil prices. August 18 reduction in diesel rates came after 33 days of status quo in rates as oil companies followed what is known as moderation policy which calls for not passing on extreme volatility in rates to consumers.
Incidentally, this status quo coincided with the Parliament session where the opposition parties tried to corner the government on various issues including the hike in fuel prices. Petrol and diesel price was last hiked on July 17.
Prior to that, the petrol price was increased by Rs 11.44 a litre between May 4 and July 17. Diesel rates had gone up by Rs 9.14 during this period. The price hike during this period pushed petrol prices above Rs 100-a-litre-mark in more than half of the country while diesel crossed that levels in at least three states.