Petrol and diesel prices were reduced by the Oil Marketing Companies (OMCs). Petrol is retailing at a price of Rs. 77.14 per litre in Delhi, Rs. 84.58 per litre in Mumbai, Rs. 80.10 per litre in Kolkata and Rs. 80.14 per litre in Chennai. Fuel rates were slashed today after OMCs kept the petrol prices unchanged and hiked diesel prices on Sunday. Diesel can be purchased today at Rs. 68.72 per litre in Delhi. Diesel is priced at Rs. 72.96 per litre in Mumbai, Rs. 71.56 per litre in Kolkata and Rs. 72.59 per litre in Chennai, according to daily price notification issued by state-owned oil firms.
Here are 5 things to know about petrol prices, diesel rates :
- Fuel prices in Delhi are the cheapest in all metros and most state capitals due to lower sales tax or VAT (Value Added Tax). Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel. Mumbai has the highest VAT of 39.12 per cent on petrol.
- State-owned oil firms had in mid-June last year dumped 15-year practice of revising rates on 1st and 16th of every month in favour of daily price revisions. The sate-run oil marketing companies Indian Oil, Bharat Petroleum and Hindustan Petroleum have been revising fuel prices with effect from 6 am on a daily basis, since then.
- Retail selling prices have been firming up since July 30 as international rates inched up. Petrol price had touched an all-time high of Rs. 78.43 a litre on May 29 and had since receded. On that day, the diesel price had touched an all-time high of Rs.69.30.
- Globally, oil prices dipped on Monday as rising trade tensions and economic woes in emerging markets dented the outlook for fuel demand growth, but US sanctions against Iran still pointed towards tighter supply. Traders said the demand outlook for oil was dimming due to ongoing trade disputes between the United States and China, as well as economic trouble in Turkey potentially spreading across emerging markets, reported news agency Reuters.
- Despite the cautious mood in oil markets, there were drivers keeping prices from falling further. The United States has started implementing new sanctions against Iran, which from November will also target the country’s petroleum sector. Iran is the third-largest producer among the members of the Organization of the Petroleum Exporting Countries (OPEC).