Petrol, Diesel Prices Reduced by Rs 2 Per Litre

As the price war between Organisation of Petroleum Exporting Countries (Opec) and U.S & Russia shale companies has reached to a new level, the State-run oil marketing companies in India (OMCs) have revised the fuel rates by Rs 2 per litre effective from Tuesday 16th December, 2014. In the past four months, petrol prices have been reduced by eight times while from October 18th, when the government deregulated the diesel prices, it has been slashed by four times. Since August, petrol price has been cut by a cumulative Rs 12.27 per litre. 

Earlier in November, the Opec companies which comprises of 12 members from Middle East agreed to keep its production to 30 million barrels per day and are ready to take the crude prices as low as $40 per barrel. The international oil prices slumped to a five-year low as it is now traded at $60 per barrel. 

Indian Oil said in a statement, "The prices of petrol and diesel were last revised downwards with effect from December 1 by Rs 0.91 per litre and Rs 0.84 a litre respectively (including state levies at Delhi) on the back of declining international oil prices," 

"Since the above price changes, the international prices of both petrol and diesel have continued to be on a downtrend. The Rupee-US Dollar exchange rate has however appreciated since the last price change. The combined impact of both these factors warrant a decrease in retail selling prices of both petrol and diesel."

In Delhi, petrol now costs Rs 61.33 per litre while in Mumbai its Rs 68.86 per litre. Similarly, the respective diesel prices in Delhi and Mumbai now stands at Rs 50.51 and Rs 57.91 per litre respectively. 

Source : CarDekho