Fuel prices continue to fall amid reports of deal to cut crude output

Amid reports of a deal between Saudi Arabia and Russia to cut crude production, Indian state-run oil firms continued to lower transport fuel prices for the eleventh straight day on Sunday, with petrol prices touching the lowest level in the ongoing fiscal across the major metros.

In the national capital, petrol price fell to Rs 72.23 per litre, against Saturday's level of Rs 72.53, according to data on the Indian Oil Corp's website.

The price in Delhi was the lowest recorded level in 2018-19 so far, with the previous low being Rs 73.73 on April 1.

In other metros too, petrol prices fell by around 30-40 paise on Sunday and recorded the lowest prices in the current fiscal.

Prices in Kolkata, Mumbai and Chennai on Sunday are Rs 74.25, Rs 77.80 and Rs 74.94 per litre, respectively, against the previous day's respective levels of Rs 74.55, Rs 78.09 and Rs 75.26 per litre.

The previous lows for the current fiscal in Kolkata, Mumbai and Chennai were Rs 76.44, Rs 81.59 and Rs 76.48 per litre, respectively, recorded on April 1.

Diesel prices also declined on Sunday in tandem with the cost of petrol.

In Delhi, Kolkata, Mumbai and Chennai, diesel per litre was sold for Rs 67.02, Rs 68.75, Rs 70.15 and Rs 70.77, respectively, compared to Rs 67.35, Rs 69.05, Rs 70.50 and Rs 71.12 on Saturday.

The fall in domestic fuel prices comes amid the recent decline in crude oil prices.

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

The price of the benchmark Brent crude oil, which declined over the past one month, has fallen further despite expectations that the Organization of the Petroleum Exporting Countries (OPEC) may decide to reduce supply in its meet next week.

The OPEC is expected to announce a supply cut of one million barrel per day to curb the fall in oil prices, according to market analysts.

--IANS

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