Published: Sun, October 21, 2018
Economy | By

Petrol, diesel price drop for fourth day in Mumbai

Petrol, diesel price drop for fourth day in Mumbai

The petrol and diesel prices deceased by 0.39 paisa per litre and 0.12 paisa per litre, respectively in Delhi.

The diesel price mark was Rs 75.36 per litre, a decrease of 12 paise in Delhi and for Mumbai, the price was Rs 79 per litre, a reduction by 13 paise. On the other hand, petrol saw a dip of 0.38 paisa per litre in Mumbai whereas, diesel price experienced a cut of 0.13 paisa per litre.

The Centre had slashed fuel prices on October 4 by Rs. 2.50 in an attempt to provide relief to consumers and the states were asked to match the cut.

In the two other metro cities, the same cut was seen. This came down to Rs 81.50 per litre for petrol and Rs 72.95 in case of diesel. The price of diesel per litre was slashed by a mere 35 paisa yesterday.

As per India's pricing mechanism, the domestic fuel prices depend upon the global fuel prices on a 15-day average and the value of the Indian rupee.

Lath further informed that this is mainly due to tax difference as the price of diesel is 13 paisa higher in Odisha while it is 13 paisa cheaper in New Delhi.

The price cut follows worldwide crude oil prices trading near the lowest level in a month.

Accordingly, the Brent crude was priced below $80 per barrel, which in recent past traded around $85 a barrel, while the rupee closed at 73.50 to a greenback from its previous close of 73.61 to a U.S. dollar.

Making an appeal to Arvind Kejriwal, Singhania in a statement said, "DPDA urges the Delhi government to immediately reduce Value-Added Tax on petrol and diesel and encourage commuters to buy euro VI fuel and save the livelihood of employees and owners of petrol pumps of Delhi and also save state's revenue loss".

Prior to Thursday's cut in rates, diesel price had risen by Rs 2.74 per litre since October 5 to more than wipe away the excise duty cut and oil firm subsidy.

The fuel prices have come down by 87 paise in the last three days. While making the announcement, the Delhi Petrol Dealers Association (DPDA) said that the fuel pumps will remain closed from 6 am on Monday till 5 am on Tuesday.

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