Petrol, diesel prices cut by 20 paise

By: |
August 22, 2021 2:24 PM

India is dependent on imports to meet nearly 85 per cent of its oil needs and so benchmarks local fuel rates to international oil prices.

Petrol and diesel prices were last hiked on July 17.

Petrol and diesel prices were cut by 20 paise per litre each on Sunday – the first reduction in petrol rate in over a month, and the fourth in case of diesel in less than a week.

Petrol price in Delhi was cut to Rs 101.64 a litre and diesel to Rs 89.07 per litre, according to a price notification of state-run oil companies.

The reduction came as international oil prices tumbled to their lowest level since May, after the US Federal Reserve signalled it was set to start tapering asset purchases within months, hurting commodities and lifting the dollar.

The price cut in diesel is the fourth since August 18, when the reduction cycle began. All four reductions have been of 20 paise per litre each.

On the previous three occasions when diesel rates were cut, petrol prices remained unchanged.

Sunday’s cut in petrol price came after 36 days of status quo in rates. Diesel rate change was effected after 33 days of no change.

The freeze in rate revision coincided with Parliament session, where the opposition parties tried to corner the government on various issues including the hike in fuel prices.

Petrol and diesel prices were last hiked on July 17.

Prior to that, the petrol price was increased by Rs 11.44 a litre between May 4 and July 17. Diesel rates had gone up by Rs 9.14 during this period.

The price hike during this period pushed petrol prices above Rs 100-a-litre mark in more than half of the country, while diesel crossed that level in at least three states.

International oil rates have fallen to USD 66 a barrel from USD 75 per barrel touched last month.

India is dependent on imports to meet nearly 85 per cent of its oil needs and so benchmarks local fuel rates to international oil prices.

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