Petrol, Diesel Prices Cut Marginally Again: 5 Things To Know

Petrol and diesel prices were cut marginally for the second straight day, after 16 consecutive hikes. While petrol prices in Delhi, Kolkata, Mumbai and Chennai were lowered by 7 paise per litre, diesel prices were reduced by 5 paise per litre, Indian Oil announced on its website – Indian Oil had first on Wednesday announced a hike of around 60 paise per litre across the metros, but hours later rectified the prices on its website citing a glitch. “There was a technical glitch in posting the selling prices of petrol and diesel on our website…” On Wednesday, Indian Oil Corporation had lowered petrol and diesel prices by 1 paisa per litre across the metros.

Here are five things to know:

1. With effect from 6 am on Thursday, petrol prices were at Rs. 78.35 per litre in Delhi, Rs. 80.98 per litre in Kolkata, Rs. 86.16 per litre in Mumbai and Rs. 81.35 per litre in Chennai, according to Indian Oil. Diesel prices were at Rs. 69.25 a litre, Rs. 71.8 a litre, Rs. 73.73 a litre and Rs. 73.12 a litre respectively.

Petrol price (in Rs. per litre)Diesel price (in Rs. per litre)
31-May 30-May 30-Apr 31-May 30-May 30-Apr
Delhi 78.35 78.42 74.63 69.25 69.3 65.93
Kolkata 80.98 81.05 77.32 71.8 71.85 68.63
Mumbai 86.16 86.23 82.48 73.73 73.78 70.2
Chennai 81.35 81.42 77.43 73.12 73.17 69.56

2. Despite two days of reduction, petrol and diesel prices rose by Rs. 3.72 a litre in Delhi, Rs. 3.66 a litre in Kolkata, Rs. 3.68 a litre in Mumbai and Rs. 3.92 a litre in Chennai this month. Diesel prices increased by Rs. 3.32 a litre, Rs. 3.17 per litre, Rs. 3.53 a litre and Rs. 3.56 a litre respectively.

3. In the past 16 days, petrol and diesel prices were hiked in the range of Rs. 3.22-3.99 per litre in the four metros, on the back of a rise in global crude oil prices and weakness in the rupee against the US dollar. Prices vary from state-to-state depending on local sales tax or VAT. Delhi has the cheapest price among all metros and most state capitals.

4. Thursday’s cut comes after a 16-day relentless price hike that followed lifting of a nearly three-week hiatus on price revision just before Karnataka went to polls.

5. Crude oil is the most expensive item on India’s import bill as the country meets more than 80 per cent of its oil requirements through imports. Therefore, weakness in the rupee against the US dollar also puts pressure on domestic petrol and diesel prices. The rupee is down more than 6 per cent against the greenback so far this year.