Fuel prices cut as Brent crude slumps

Fuel prices were further cut on Monday due to sharp drop in international crude oil rates following the outbreak of coronavirus in China. The price of petrol was cut by 15 paise and that of diesel by 25 paise across all major cities on Monday.

The petrol now costs Rs 73.71 a litre in Delhi, Rs 79.32 a litre in Mumbai, Rs 76.33 a litre in Kolkata and Rs 76.56 a litre in Chennai after the price cut.

Similarly, diesel costs Rs 66.71 a litre in Delhi, Rs 69.93 a litre in Mumbai, Rs 69.07 per litre in Kolkata and Rs 70.47 a litre in Chennai, according to the Indian Oil Corporation website.

Global oil benchmark Brent crude fell nearly five dollars per barrel since last week due to sluggish demand following a sharp rise in coronavirus cases in China. The Brent crude fell below $60 per barrel to $59.39 a barrel on Monday as the death toll due to coronavirus rose sharply. 

Chinese health authorities on Monday informed that 2,744 confirmed cases of pneumonia caused by coronavirus, including 461 in critical conditions, had been reported in the country.

A sharp adverse reaction from Asian, US and European stock markets has been witnessed because China is entering one of its busiest travel periods on account of its Lunar New Year holiday.

The retail prices of fuel are dependent on the international crude prices and the rupee-US dollar exchange rate as India imports almost 80 per cent of its crude requirements.

Domestic petrol and diesel prices are reviewed by oil marketing companies on a daily basis. Price revisions are implemented at the fuel stations with effect from 6 a.m.