Petrol, diesel prices continue to fall as global crude rates ease

New Delhi (IANS): State-run oil marketing companies continued to cut the prices of key domestic transport fuels -- petrol and diesel -- well into the second week on Sunday on lower global crude oil prices.

According to the Indian Oil Corp data, petrol was priced at Rs 80.05 per litre in the national capital on Sunday.

Across the other major metros, petrol was priced at Rs 85.54 per litre in Mumbai, Rs 81.92 in Kolkata and Rs 83.18 in Chennai on Sunday.

As per the country's pricing mechanism, under the daily dynamic pricing regime, domestic fuel prices depend on international fuel prices on a 15-day average, besides the value of the rupee.

Prices vary from region to region due to local taxes as the product is excluded from the GST regime. Delhi has the lowest tax rate among the four metro cities.

In tandem with petrol, the cost of diesel declined on Sunday across the four metros.

The price of diesel in Mumbai was down at Rs 77.61 per litre.

Similarly, prices of diesel in Delhi, Kolkata and Chennai declined to Rs 74.05, Rs 75.90 and Rs 78.29 a litre respectively.

The downward revision also comes on the back of multiple factors such as lower international crude oil cost and a recovery in the rupee against the US dollar.

On Friday, UK Brent crude traded at around $76 per barrel, from a recent high of over $86.

Earlier this month, the Centre announced a cut in excise duty by Rs 1.50 a litre.

Additionally, the state-owned oil marketing companies had been mandated to reduce the prices of petrol and diesel by Re 1 a litre.