Petrol and diesel prices were cut for the fourth straight day Sunday on softening international oil prices, providing some relief to consumers battered by two months of relentless rate hikes.
Petrol price was cut by 25p/liter and diesel by 17p, according to price notification of state-owned oil firms.
Fuel prices have been declining since Thursday as oil companies factored in softening of international rates.
Fuel prices in Delhi and Mumbai
In Delhi, petrol now costs Rs. 81.74/liter and diesel is priced at Rs. 75.19/liter. In Mumbai, petrol is sold for Rs. 87.21/liter and diesel at Rs. 78.82/liter. In four days, petrol price has been cut by Rs. 1.09/liter and diesel by 50p/liter.
Prices reduced by at least Rs. 2.50 since Oct 5
Fuel rates were reduced by a minimum Rs. 2.50/liter across the country on October 5, when the government cut excise duty on petrol and diesel by Rs. 1.50/liter and asked oil PSUs to subsidize the fuels by another Re. 1/liter.
The reduction in BJP-ruled states was more as they matched this cut by an equivalent reduction in local sales tax or VAT.
International oil prices trading near lowest level in a month
The price cut follows international oil prices trading near the lowest level in a month on a bigger-than-expected gain in American stockpiles.
On Friday, West Texas Intermediate for November delivery settled at $69.12 a barrel on the New York Mercantile Exchange, while Brent for December settlement was at $79.78 a barrel on the London-based ICE Futures Europe exchange.
Brent earlier in October hit a four-year high
Brent had earlier this month hit a four-year high of $86.74 a barrel. Prior to Thursday's cut in rates, diesel price had risen by Rs. 2.74/liter since October 5. Petrol price had during this period risen by Rs. 1.33/liter.
Fuel prices at all-time high before price cut
Before the October 5 price cut, petrol in Delhi had hit an all-time high of Rs. 84/liter and diesel was at record Rs. 75.45.
This came down to Rs. 81.50/liter for petrol and Rs. 72.95 in case of diesel.
In Mumbai, petrol had hit a peak of Rs. 91.34 hit on October 4 and diesel was sold at a record high of Rs. 80.10.