Petrol and Diesel prices cut for third straight day even as brent recovers

Retail petrol and diesel prices have been reduced for the third straight day on Wednesday, even as Brent rose $2.86, or 8.3 per cent, to settle at $37.22 a barrel after the biggest rout in nearly 30 years a day earlier. The rise of Brent was on the hopes of economic stimulus by the US administration.

Petrol price in national capital Delhi saw a cut of Rs 2.69 a litre, while diesel price in the city was reduced by Rs 2.33. Fuel rates had seen a cut for the last two days, too and they are likely to maintain a declining trend through this week.

Petrol in Delhi now costs Rs 70.29 per litre and diesel Rs 63.01 a litre. In Chennai, a litre of petrol will cost Rs 73.02, whereas diesel is now priced at Rs 66.48 per litre. In Mumbai, petrol is now selling at Rs 75.99 per litre and diesel at Rs 65.97 per litre.

Analysts do not expect oil prices to quickly regain the nearly 25 per cent slump after Saudi Arabia and Russia failed to reach a deal, triggering a price war. Adding to the fire is the Coronavirus outbreak which is expected to force a demand slump. On Tuesday, Saudi Arabia announced its decision to raise its crude supply to a record high in April to 12.3 million barrels per day (bpd), well above current production levels of 9.7 million bpd.