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Petrol and diesel prices have been slashed again on Tuesday, the third time in a week's time. The petrol price has become cheaper by 22 paise per litre and diesel by 23 paise per litre, on the back of the softening crude oil prices in the international market.

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In these three reductions, petrol price has come down by 61 paise per litre and diesel by 60 paise, within a week. Before this, prices of motor fuels had gone up by a record mark. Petrol prices increased by 21.58 per litre since the government raised excise duty in March 2020, while diesel prices had increased by 19.18 a litre.

Post the price reduction on Tuesday, per litre petrol in Delhi now costs 90.56 and a litre of diesel comes available for 80.87. In Mumbai, the petrol price has been cut to 96.98 a litre on Tuesday from 97.19, while the diesel rate is 87.96 a litre, down from 88.20.

While the petrol and diesel rates have been reduced across the country, the retail prices vary from state to state depending on the local incidence of taxation (VAT).

The petrol and diesel retail prices combine both the central government's excise duty and VAT imposed by state governments, along with the dealer commissions. The central and state government taxes contribute around 60% of the retail price, as combined.

The motor fuel prices that were shooting sky-high in recent times, since early February 2021, were reduced for the first time in six months on March 24, and thereafter on March 25. Prior to that, the last reduction was on March 16 2020.

The international crude oil prices have slumped on the prospect of speedy recovery in consumption getting hindered by the second wave of Covid-19 cases. The increasing restrictions on mobility in various cities across the world too are resulting in the dip in crude oil prices.