After 32 days of stability, petrol prices dropped by 15 to 20 paise per litre across the country on August 22, as per a price notification by state-run oil companies. While diesel prices saw a decline by 18 to 20 paise after a day of pause.
The price cut has now revised the cost of petrol in Delhi to ₹101.64 per litre and diesel cost to ₹ 89.07 per litre.
Mumbai witnessed a similar trend with their petrol price marginally dropping to ₹107.66, 17 paise less than the previous ₹107.83. Mumbai had become the first city on May 29 .to sell petrol which had crossed the ₹100 mark. Diesel price also dropped in India’s financial hub ₹96.64 per litre.
In Kolkata, petrol and diesel prices too fell 15 and 19 paise respectively. Currently, the price of stands at ₹101.93 in the city, while for diesel it’s ₹92.13.
Chennai, which witnessed a price slash of 15 paise is retailing petrol at ₹99.32 and diesel is being sold at ₹93.66 after an 18 paise price decrease. Tamil Nadu’s DMK government had recently announced a tax cut of ₹3 on petrol per litre.
This price cut is the fallout of international oil prices dropping to their lowest levels since May, after the US Federal Reserve notified that it was going to taper asset purchases in a few months. This move meant it would hurt commodities and lift the dollar.
Since India is largely dependent on imports to meet its oil needs, its fuel rates fluctuate depending on international oil prices. The diesel rate deduction on August 18 came after 33 days of stability since oil companies were pursuing a moderation policy, which ensured that consumers don’t end up facing volatile rates.
This change in the status quo has coincided with Opposition parties slamming the government on several issues, including the sharp rise in fuel rates. The last hike in diesel and petrol prices had transpired on July 17.