Petrol price was slashed for the second consecutive day on Staurday after which it became 10 paise cheaper. In Delhi, petrol was retailing at Rs 70.28 compared to Rs 70.38 on Friday. However, the price of diesel remained unchanged. It was selling at Rs 65.56 per litre. In Mumbai, petrol price dropped to Rs 75.92 per litre and diesel was retailing at Rs 68.65 per litre.
In Kolkata, petrol was priced at Rs 72.39 and diesel at Rs 67.34, while in Chennai, petrol was retailing at 72.95 and diesel at 69.25.
In Noida, petrol was priced at Rs 70.08 - cheaper by 19 - a litre and diesel at Rs 64.67 a litre. In Gurugram, petrol and diesel retailed at Rs 71.22 a litre and Rs 65.35 a litre.
Prior to an increase in prices on January 7, rates had cooled to a year’s low of Rs 68.29 for petrol and Rs 62.16 in case of diesel. This followed a decline in rates on almost all days since October 18, 2018.
If the last three months are considered, then the price of petrol has fallen by about Rs 12 or about 15%. International benchmark Brent crude oil, which is now trading close to the $60 per barrel mark, has lost about 25% of its value during the corresponding period.
The recent fall in the value of rupee against the US dollar has offset gains from the falling crude oil prices. The rupee has fallen over 3 per cent in the last few days. The crude prices have fallen by over 30 per cent since early October last year when it was at $86 per barrel, making a forecast of $100 crude by January look true.
The twin factors, therefore, have brought down retail fuel rates to two-month low. Retail fuel prices in India depend on both the international oil price and the rupee-dollar exchange rate. Also, the pump price of petrol and diesel is dependent on the global rates of benchmark fuel and the rupee-US dollar exchange rate.