In New Delhi, petrol price has been slashed by 25 paise to retail at Rs. 81.74 per litre, while diesel is being sold 17 paise lower at Rs. 75.19 per litre.
Finance Minister Arun Jaitley had, on October 4, announced a reduction of Rs 2.50 per litre on both petrol and diesel prices after curbing excise duty on the commodity by Rs 1.50 per litre. In Delhi, petrol was priced at Rs 82.62 per litre (decrease by Rs 0.21) while the price of diesel was at Rs 75.58 per litre (decrease by Rs 0.11).
Due to the difference in prices, there has been a sharp drop of 50-60 per cent in the sale of diesel in Delhi and 25 per cent in petrol in this quarter, the DPDA president said.
The rates were reduced by a minimum Rs 2.50 per litre across the country on October 5, when the government cut excise duty on petrol and diesel by Rs 1.50 a litre and asked oil PSUs to subsidise the fuels by another Re 1 a litre. In Kolkata, the petrol price settled at Rs 84.21 per litre and in Chennai, it was Rs 85.63 per litre. The price of diesel per litre was slashed by a mere 35 paisa yesterday.More news: Intu considers UK-Saudi takeover offer
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As per the country's pricing mechanism, the domestic fuel prices depend on global fuel prices on a 15-day average besides the value of the rupee.
Accordingly, the Brent crude was priced below $80 per barrel, which in recent past traded around $85 a barrel, while the rupee closed at 73.50 to a greenback from its previous close of 73.61 to a USA dollar.
Petrol and diesel prices were reduced for the first time in over two months on Thursday because of a drop in the cost of production, according to state-owned oil firms.
The dip in fuel prices comes almost a fortnight after Finance Minister Arun Jaitley announced a cut in excise duty by Rs 1.50 a litre. While making the announcement, the Delhi Petrol Dealers Association (DPDA) said that the fuel pumps will remain closed from 6 am on Monday till 5 am on Tuesday. This was followed by a reduction of Value-Added Tax by various states, including neighbouring Haryana and Uttar Pradesh.