Fuel prices declined once again

Fuel prices once again witnessed a decline on Friday in New Delhi and Mumbai owing to a reduction in the rates of crude oil.

In New Delhi, petrol is being sold at Rs 77.10 per liter after a decrease of 18 paise, and diesel at Rs 71.93 per liter after a decrease of 16 paise.  Meanwhile, petrol is retailing 18 paise lower at Rs 82.62 per liter and diesel at Rs 75.36 after a decrease of 17 paise in Mumbai.

The rates of petrol and diesel across India are witnessing a continuous decline due to a fall in the prices of crude oil. Petrol costs Rs 80.26 in Chennai, Rs 77.90 in Bengaluru and Rs 79.21 in Kolkata. Diesel is priced at Rs 76.19 in Chennai, Rs 72.48 in Bengaluru and Rs 73.95 in Kolkata.

Petrol prices had touched an all-time high of Rs 84 a liter in Delhi on 4 October but have since declined to Rs 77.28 per liter on Thursday. Diesel, which had touched a record high of Rs 75.69 on 16 October, is now priced at Rs 72.09 per liter in Delhi.

Friday is the 30th consecutive day when fuel prices have not been increased in the country. Another report said that diesel has become costlier than petrol in Goa, Gujarat, Odisha and Andaman, and the Nicobar Islands.

India’s fuel demand rose by 4 percent in October as a drop in prices propelled a rise in petrol and diesel consumption.

Fuel consumption in October totaled 17.99 million tonnes (MT) as compared to 17.3 MT in the same month last year, data from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry showed.

When fuel prices started to rise on the back of a spurt in international oil rates and depreciation in rupee value against the US dollar in August, demand marginally dipped by 0.3 percent to 16.5 MT. In the following month, when petrol and diesel prices continued their upward trend, consumption rose by just 1 percent to 16.51 MT.

However, rates have been on the decline in October as the government cut excise duty by Rs 1.50 a liter and asked oil firms to subsidies fuel by another Re 1 a liter, which many states matched with equivalent cuts in sales tax (VAT).