Petrol, diesel prices reduced after more than a year
What's the story
In the first reduction in rates in over a year, the petrol price on Wednesday was cut by 18 paise per liter and diesel by 17 paise a liter as international oil prices tumbled to the lowest since early February. Petrol price was cut to Rs. 90.99 a liter in Delhi from Rs. 91.17 per liter, according to a price notification of state-owned fuel retailers.
Reduction
First reduction in fuel prices in over a year
Rates have been reduced across the country and vary from state to state depending on the local incidence of taxation (VAT). This is the first reduction in fuel prices in over a year. Prices were last reduced on March 16, 2020. Despite bouts of rate freeze, prices had gone up by a record Rs. 21.58 per liter on petrol in the last year.
Prices
Prices were on freeze in some places since February end
On the other hand, diesel prices had increased by Rs. 19.18 a liter. Prices which last month hit record highs, including crossing Rs. 100 mark in some places in Rajasthan, Maharashtra, and Madhya Pradesh, had been on freeze since February end when elections to five states including West Bengal, Assam, Tamil Nadu, and Kerala were announced.
Information
Petrol price cut to Rs. 97.40 in Mumbai
In Mumbai, the petrol price was cut to Rs. 97.40 a liter on Wednesday from Rs. 97.57, while diesel rates were reduced to Rs. 88.42 from Rs. 88.60, the price notification showed.
Rate reduction
International oil prices are at a low
The rate reduction followed international oil prices tumbling to the lowest since early February as the second wave of COVID-19 clouded the prospects for speedy recovery in consumption. West Texas Intermediate for May delivery was down to $57.76 in New York on Tuesday, the lowest close since February 5 while Brent lost $3.83 to stand at $60.79 a barrel, the lowest since February 8.