Global crude softens indicating further cut in petrol, diesel prices

Petrol and diesel prices across India remains steady for the fifth consecutive day after the central government announced excise duty cuts by ₹5 for petrol and ₹10 for diesel. Now, with the crude oil prices have softened to around $83 per barrel from the three years high level of more than $85 a barrel, there is hope that the price of petrol and diesel would further dip in India.

However, stability in the crude oil prices in the international market is not certain. The oil-producing country's organisation OPEC+ has decided to gradually increase the production in December only. Hence, before that, the prices of crude oil in the global market could rise again, which would impact the price of motor fuels in India as well.

Petrol price in Delhi on Tuesday is at ₹103.97 per litre and the diesel rate is ₹86.67 a litre. In Mumbai, the petrol price is ₹109.98 a litre and diesel ₹94.14 per litre on Tuesday. In Kolkata, the petrol price is ₹104.67 per litre and the diesel rate is ₹89.79 a litre since last week. In Chennai, petrol costs ₹101.40 per litre and the diesel rate is ₹91.43 per litre.

In recent times, petrol and diesel prices in India have witnessed an incessant rise, owing to the steep hike in excise duty in 2020. Besides that the hike in crude oil prices in the international market too impacted it. While per litre petrol price crossed ₹100 in major parts of the country, diesel price too breached the century mark in several places across India.

However, the latest slash in excise duty came as a much-awaited breather for the motorists and non-motorists as well. Adding to that was the VAT rate reduction by several state governments across India.