State-run oil marketing companies have cut the fuel prices on Thursday across major cities in India. While the petrol prices have been cut by 16 paise per litre, diesel prices have been reduced by 7-10 paise in Delhi, Mumbai, Kolkata and Chennai.
In Delhi, while petrol is costing Rs 72.84 per litre, people need to spend Rs 66.56 per litre for diesel. The petrol and diesel prices have been slashed by 16 paise and 10 paise respectively in the national capital.
In Mumbai, petrol is being sold at Rs 78.44, down 15 paise from yesterday’s rate, diesel is selling at Rs 69.74 a litre, lower by 7 paise from the last price, according to the website of Inidan Oil Corporation or IOC.
In Chennai, diesel and petrol are selling at Rs 75.63 a litre and 70.36 a litre respectively. The petrol and diesel prices have been cut by 16 paise and 7 paise respectively. In Kolkata also, diesel and petrol prices have been cut by 16 paise and 8 paise respectively. People need to shell out Rs 74.88a litre for petrol and Rs 68.32 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 create public outrage among common people during elections.
“The international crude oil prices will likely go up by 10% in the next 30-40 days and 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 controls the fuel prices. There can be some marginal increase 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 requirements and it is the third largest importer of oil from Iran which is currently struggling because of 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 amid geopolitical tensions between the US and Iran.