On Sunday, fuel prices were further reduced due to a slump in demand after the coronavirus was declared pandemic. The petrol and diesel prices were cut by 11-12 paise and 14 paise respectively, across all major cities in the country.
Petrol now costs Rs 69.75 per litre in Delhi, Rs 75.46 per litre in Mumbai. Similarly, diesel costs Rs 62.44 a litre in Delhi, Rs 65.37 a litre in Mumbai, according to information provided by Indian Oil Corporation (IOCL). The retail prices of the two fuels are revised daily. The petrol and diesel rates are revised on the basis of crude prices in the international market.
Amid Saudi-Russia oil price war, Indian government on Saturday hiked excise duty on petrol and diesel by Rs 3 per litre. Special excise duty on petrol was hiked by Rs 2 to Rs 8 per litre incase of petrol and to Rs 4 incase of diesel.
The Rs 3 per litre increase in excise duty in petrol and diesel has brought both good and bad news for consumers. The good news is that there would not be any increase in retail selling price of the two petroleum products as a direct fallout of of excise duty hike. But the bad news is that consumers would not get the required gains of lower auto fuel prices on account of a slump in international oil prices.
Oil prices swung more than six per cent on Friday, but were still on track for their biggest weekly loss in more than a decade owing to a price war and the spreading coronavirus pandemic.
Crude oil prices on Friday surged 2.32 per cent to Rs 2,382 per barrel as participants enlarged their holdings tracking a positive trend overseas. On the Multi Commodity Exchange, crude oil for delivery in March traded higher by Rs 54, or 2.32 per cent, to Rs 2,382 per barrel in 60,516 lots. Crude oil for April delivery was up by Rs 47, or 1.96 per cent, to Rs 2,439 per barrel with an open interest of 3,595 lots.
(Inputs from Agencies)