Petrol and Diesel Prices Reduced

Oil marketing companies (OMCs) have cut down petrol and diesel prices by 50 paise per litre and 46 paise per litre respectively. After this cut, the cost of petrol is Rs. 59.98 per litre and diesel costs Rs. 46.09 per litre in Delhi. The decrease in prices come as a result of a fortnightly revision that will take place regularly from now on to align the fuel prices in the international and domestic market. Fuel prices majorly depend on two factors - the exchange rate of currency and price of crude oil in the international market, the cut in fuel costs is a result of decrease in the price of crude oil. Earlier this month, the price of crude oil showed a drastic decrease, from Rs. 2725 to Rs. 2304. The fuel price could have gone down more if the Indian rupee had not been depreciating.

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OMCs stated that the price could have been decreased up to Rs. 2 per litre but the government might raise the excise duty on these fuels to generate more revenue. The excise duty on petrol and diesel has been increased five times this year. The total increase is Rs. 9.45 on petrol and Rs. 6.90 on diesel. India’s largest fuel retailer, Indian Oil said in a statement, “The current level of international product prices of Petrol & Diesel and INR-USD exchange rate warrant a decrease in prices, the impact of which is being passed on to the consumers with this price revision. The movement of prices in the international oil market and INR-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes.”

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