On Friday, fuel prices dipped further after slump in international crude oil rates following the outbreak of coronavirus in China. The price of petrol was cut by 22 paise and that of diesel by 25-27 paise across all major cities.
So now, a litre of diesel costs Rs 70.88 in Mumbai, and Rs 67.61 in Delhi, while a litre of petrol is priced at Rs 80.03 in Mumbai, and Rs 74.43 in Delhi. Retail prices of the two automobile fuels are revised daily. Petroleum companies revise petrol and diesel prices on the basis of crude prices in the international market. Hence the prices vary according to the company.
The retail prices of fuel are dependent on the international crude prices and the rupee-US dollar exchange rate as India imports almost 80 per cent of its crude requirements.
On the Multi Commodity Exchange, crude oil for February delivery dropped by Rs 77, or 1.9 per cent, to Rs 3,971 per barrel with a business volume of 33,323 lots. Crude oil for March delivery was quoting lower by Rs 74, or 1.82 per cent, at Rs 3,987 per barrel with an open interest of 838 lots.
Analysts said the fall in crude oil futures was mostly due to trimming of positions by traders amid weak spot demand. Globally, West Texas Intermediate crude oil traded 1.87 per cent lower at USD 55.68 per barrel. Brent Crude, the international benchmark dropped 1.61 per cent to trade at USD 62.19 per barrel in New York.
(Inputs from PTI)