Diesel price on Friday was cut by 20 paise per litre - the third straight day of reduction, but petrol rates remained unchanged for the 34th straight day.
Diesel price in Delhi was reduced to Rs 89.27 per litre from Rs 89.47 a litre, according to a price notification by state-run oil companies. Just like on Thursday, the petrol price wasn't revised on Friday. In Delhi, petrol continued to be priced at Rs 101.84 a litre.
Across the country as well, diesel prices fell between 18-25 paise per litre while petrol remained at the same level prevailing for the last one month.
In Mumbai, where petrol prices crossed the Rs 100-mark for the first time ever on May 29, the fuel price is at Rs 107.83 per litre. With the reduction, diesel price in the city dropped below Rs 97 to Rs 96.84.
In Chennai, the diesel price fell by 18 paise. This decreased the price of a litre of fuel to Rs 93.84 from Rs 94.02. The price of petrol, which was recently cut down by Rs 3 after the Tamil Nadu government announced a tax cut, did not see any change and was sold at Rs 99.47 per litre.
Similarly, in Kolkata diesel price fell by 25 paise and was sold at Rs 92.32 per litre. The petrol price remained unchanged and retailed at Rs 102.08 per litre.
The price cut follows international oil prices tumbling to their lowest level since May after the US Federal Reserve signalled it was set to start tapering asset purchases within months, hurting commodities and lifting the dollar.
While Brent declined USD 2.13 to USD 66.10 a barrel, West Texas Intermediate fell USD 2.39 to USD 63.07 a barrel. India is near 85 per cent dependent on imports to meet its oil needs and so benchmarks local fuel rates to international oil prices.
Wednesday's reduction in diesel rates came after 33 days of status quo in rates as oil companies followed what is known as moderation policy which calls for not passing on extreme volatility in rates to consumers.
Incidentally, this status quo coincided with the Parliament session where the opposition parties tried to corner the government on various issues including the hike in fuel prices. Petrol and diesel price was last hiked on July 17. Prior to that, the petrol price was increased by Rs 11.44 a litre between May 4 and July 17. Diesel rates had gone up by Rs 9.14 during this period. The price hike during this period pushed petrol prices above Rs 100-a-litre-mark in more than half of the country while diesel crossed that levels in at least three states.
(With inputs from Agencies)
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