Once again petrol and diesel saw reduction in their prices, this time petrol prices was cut by ₹ 2.41 to ₹ 2.58 per litre and diesel by ₹ 2.25 to ₹ 2.43 per litre on back of fall in international crude oil price. It is the sixth reduction in petrol price since August 2014. New prices will be effective from Saturday, 12 a.m. onwards.
Since newly formed government deregulated the oil prices in October this year, it is the second time that oil prices have taken a dip. In fact since August petrol price has been cumulatively reduced by Rs 9.36 per litre.
From Friday, petrol will cost Rs 64.25 per litre in Delhi, ₹ 74.21 in Kolkata, ₹ 74.46 in Mumbai and ₹ 69.59 in Chennai. Whereas diesel will cost Rs 55.60 a litre in Delhi, Rs 60.30 in Kolkata, ₹ 63.54 in Mumbai and Rs 59.27 in Chennai. Due to variation in taxes, oil prices differ from state to state.
Diesel price saw its first cut in past five years after government deregulated the price on October 18 this year. LPG price was also reduced by ₹ 18.5 on very same day.
As crude oil price has a negative slope in the international market, we can further expect a decline in oil prices. Inflation will also decrease followed by the revised rates thus further reducing the prices of all commodities.