Oil marketing companies finally passed on the benefit of softening global oil and product prices to consumers reducing the retail price of diesel by 20 paise per litre in the national capital on Wednesday.
With the cut, diesel is now priced at Rs 89.67 while with no change petrol continues to be sold for Rs 101.84 per litre in Delhi.
Across the country as well, diesel prices fell between 20-25 paise per litre while petrol remained at the same level prevailing for the last one month.
Global crude prices have now softened to below $ 70 a barrel after it swung in all directions in July starting with a low of $70 a barrel to quickly rise to over $ 77 a barrel, only to fall soon below $ 70 a barrel and crossing $ 75 a barrel later in the month.
The fall in global oil should have resulted in almost Rs 2 per litre reduction on retail price of fuel. However, OMCs still want to see market movements before making further cuts.
The pump price of auto fuels has been static since July 18.
In Mumbai, where petrol price crossed the Rs 100-mark for the first time ever on May 29, the fuel price is at Rs 107.83 per litre. Diesel price in the city is also close to Rs 97.24 a litre, the highest among metros.
Petrol prices in all metros have already crossed the Rs 100 per litre-mark. In Chennai, petrol is priced at Rs 99.47 a litre and in Kolkata Rs 102.08 a litre. Diesel is also priced at Rs 94.20 and Rs 92.82 per litre in both cities respectively. In Chennai, petrol prices fell by almost Rs 3 per litre on August 14 after the state government cut VAT on the fuel.
The long price pause for auto fuels has come after fuel prices increased for 41 days in the current financial year. The 41 increases has taken up petrol price by Rs 11.44 per litre in Delhi. Similarly, diesel rate has increased by Rs 8.94 per litre in the national capital.
Prices of both auto fuels reduced only once in April by 16 and 14 paise per litre respectively. Diesel price was also reduced by 16 paise per litre in Delhi on July 12 and again now on August 18.
Since April 2020, petrol prices have increased by Rs 32.25 per litre from Rs 69.59 a litre to Rs 101.84 a litre now in Delhi. Similarly, diesel prices during the period have increased by Rs 27.38 per litre from Rs 62.29 to Rs 89.87 a litre in the national capital.