Sigh of relief for citizens as fuel prices witness further reduction

Citizens have a reason to rejoice, as fuel prices have witnessed further reduction on Sunday.

In New Delhi, petrol price has been slashed by 25 paise to retail at Rs. 81.74 per litre, while diesel is being sold 17 paise lower at Rs. 75.19 per litre.

Price of petrol in Mumbai has been reduced by 25 paise to retail at Rs 87.21 per litre, while diesel is being sold at Rs 78.82 per litre after an 18 paise cut.

Fuel prices have been soaring since the past few months in the country, burning a hole in commuters' pockets. While the Opposition has repeatedly blamed the Centre for the steep hike in the fuel price, the latter has maintained that global crude oil prices and other international factors are responsible for the increase in prices of petroleum products.

As per India's pricing mechanism, the domestic fuel prices depend upon the international fuel prices on a 15-day average and the value of the Indian rupee.

In a bid to ease the crunch caused by soaring fuel prices, Finance Minister Arun Jaitley had, on October 4, announced a reduction of Rs 2.50 per litre on both petrol and diesel prices after curbing excise duty on the commodity by Rs 1.50 per litre. He had also directed all state governments to slash rates.