Diesel price cut by 20 paise, petrol unchanged
What's the story
Diesel price on Thursday was cut by 20 paise per liter - the second straight day of reduction, but petrol rates remained unchanged. Diesel price in Delhi was reduced to Rs. 89.47 per liter from Rs. 89.67 a liter, according to a price notification by state-run oil companies. The reduction comes on the back of a similar cut on Wednesday.
Petrol prices
In Delhi, petrol continued to be priced at Rs. 101.84/liter
Just like on Wednesday, the petrol price wasn't revised on Thursday. In Delhi, petrol continued to be priced at Rs. 101.84 per liter. The price cut follows international oil prices tumbling to their lowest level since May after the US Federal Reserve signaled it was set to start tapering asset purchases within months, hurting commodities and lifting the dollar.
Information
India is 85% dependent on imports to meet oil demands
While Brent declined $2.13 to $66.10 a barrel, West Texas Intermediate fell $2.39 to $63.07 a barrel. India is near 85% dependent on imports to meet its oil needs and so benchmarks local fuel rates to international oil prices.
Status quo
Reduction came after 33 days of status quo in rates
Wednesday's 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.
Background
Petrol and diesel price was last hiked on July 17
Petrol and diesel price was last hiked on July 17. Prior to that, the petrol price was increased by Rs. 11.44/liter 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-liter-mark in more than half of India while diesel crossed that level in three states.