Petrol prices have been on a downward trend in the recent times, with the overall price cut exceeding Rs 5 in Delhi in less than a month. Notably, petrol prices have fallen from Rs 82.83 on October 17th to Rs 77.56 today, implying a cut of Rs 5.27. In financial capital Mumbai, the price of one litre of petrol has fallen from Rs 88.29 from near record highs on October 17th to Rs 83.07 today, implying a slash of Rs 5.22. In case of Chennai, the rate for one litre of petrol has been cut from Rs 86.10 to Rs 80.56 today, a slash of Rs 5.54 from October 17th. In case of Kolkata, petrol prices have dropped by Rs 5.16 from October 17th to Rs 79.49 today.
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The reduction in petrol prices comes even as global crude oil prices recede from highs. Having reached a four-year high in early October, Brent crude has slid by about 19 percent to close at $70.18 a barrel on Nov. 9, Reuters reported. It’s no secret that the Saudis, and other producers in the Organization of the Petroleum Exporting Countries (OPEC) and its allies, would prefer crude prices to remain north of $80 a barrel, a level that they believe is sustainable.
Part of the reason oil prices have retreated is producers responded to Trump’s pressure for more supply in order to compensate for the expected loss of Iranian barrels with the re-imposition of US sanctions against Tehran on Nov. 4, noted Reuters.
Meanwhile, oil prices rose by about one percent on Monday after top exporter Saudi Arabia announced a cut in supply for December, seen as a measure to halt a market slump that had seen crude decline by 20 percent since early October. International benchmark Brent crude oil futures were at $71.11 per barrel at 0051 GMT, up 93 cents, or 1.3 percent from their last close, said the Reuters report.