Diesel rates have also been cut sharply. The price of the fuel is now down at 8-month low
Global oil prices have fallen sharply amid coronarvirus scare
Domestic petrol and diesel prices were cut sharply today, following a recent slump in global oil prices. Petrol rates were cut between 15 paise to 18 paise per litre today in metros today in second successive day of sharp reduction of fuel prices. Diesel rates saw a sharper cut, down about 20 paise to 26 paise in top metros. In Delhi, petrol retailed at ₹71.71 per litre, which is the lowest price in about six months. In Kolkata, Mumbai and Chennai, petrol today cost ₹74.38, ₹77.4 and ₹74.51 a litre.
After the sharp cut, diesel today retailed at ₹64.3 a litre, the lowest price in about eights months. In Kolkata, Mumbai and Chennai, diesel today retailed at ₹66.63, ₹67.34 and ₹67.86 a litre.
Petrol and diesel prices in India depend on the international crude prices, the rupee-US dollar exchange rate, local taxes (excise duty and VAT) and other factors like freight charges, dealer commission and margins of oil marketing companies. India imports about three-fourth of its crude requirements.
For example, petrol today costs ₹71.71 per litre in Delhi. On the base price of petrol of ₹32.61 per litre, excise duty of ₹15.25 per litre is levied while VAT of ₹15.25 per litre is charged.
Oil marketing companies revise petrol and diesel prices on a daily basis and they come into effect from 6 am.
With the coronavirus outbreak spreading to more countries, the price of oil has dropped precipitously amid fears of further weakening of global demand.
The global benchmark Brent crude dropped 14% for this week to its lowest levels since July 2017, closing at $50.52 a barrel on Friday.
Analysts expect travel restrictions and factory shutdowns caused by coronavirus to shave 400,000 barrels a day from global consumption growth, which would take the industry to its lowest level of consumption in a decade.
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