State-run oil marketing companies have cut the fuel prices on the second consecutive day on Friday across major cities in India. While the petrol prices have been cut by 20-23 paise per litre, diesel prices have been reduced by 9-10 paise in Delhi, Mumbai, Kolkata and Chennai.
In Delhi, while petrol is costing Rs 72.63 against the previous rate of Rs 72.84 per litre, people need to spend Rs 66.47 per litre for diesel. The petrol and diesel prices have been slashed by 21 paise and 9 paise respectively.
In Mumbai, petrol is being sold at Rs 78.23, down 21 paise from yesterday’s rate, diesel is selling at Rs 69.65 a litre, lower by 9 paise from the last price, according to the website of Inidan Oil Corporation or IOC.
In Chennai, diesel and petrol are selling at Rs 75.40 a litre and 70.26 a litre respectively. The petrol and diesel prices have been cut by 23 paise and 10 paise respectively. In Kolkata also, diesel and petrol prices have been cut by 20 paise and 9 paise respectively. People need to shell out Rs 74.69 a litre for petrol and Rs 68.23 a litre for diesel in Kolkata.
While the international crude oil prices are likely to surge in a month’s time due to geo-political tensions in Iran, the experts hope the petrol and diesel prices to remain stable till the elections get over on May 19, as the government would not like to upset common people during elections.
“The international crude oil prices are likely to go up by 10% in the next one month and may cross the $75 per barrel mark. I don’t see any significant increase in petrol and diesel prices going forward till elections as the government has control on petrol and diesel rates. There can be some marginal fluctuation in fuel prices but not in the same proportion as increase in crude oil prices,” Amit Sajeja, Associate Vice President, Motilal Oswal, told Financial Express Online.
India imports 80 percent of its oil needs and it is the third largest importer of oil from Iran which is currently reeling under pressure due to US decision of ending sanction waivers to the major buyers of Iranian oil, including India. According to experts, the crude oil prices are likely to rise in the range of $72-74 per barrel in a week or so in the middle of geopolitical tensions between the US and Iran.