Fuel prices continue to fall as global crude rates ease

New Delhi: State-run oil-marketing companies continued to cut the prices of key transport fuels -- petrol and diesel -- well into the fourth week on Saturday on lower global crude oil prices.

According to the Indian Oil Corp data, petrol was priced at Rs 77.89 per litre in the national capital on Saturday, 17 paise lower from Friday.

Petrol prices fell by 17 to 18 paise to Rs 83.40 per litre in Mumbai, Rs 79.81 in Kolkata and Rs 80.90 in Chennai on Saturday.

As per the daily dynamic pricing regime, domestic fuel prices depend on international fuel prices on a 15-day average, besides the value of the rupee.

Prices vary from region to region due to local taxes, as the products are excluded from the GST regime. Delhi has the lowest tax rate among the four metros.

In tandem with petrol, the cost of diesel declined by 16 to 17 paise on Saturday across the four metros.

The price of diesel in Mumbai was down at Rs 76.05 per litre.

Similarly, prices of diesel in Delhi, Kolkata and Chennai declined to Rs 72.58, Rs 74.44 and Rs 76.72 a litre respectively.

The downward revision also comes on the back of multiple factors such as lower international crude oil cost and a recovery in the rupee against the US dollar.

On Friday, the UK Brent crude traded at around $70 per barrel, from a recent high of over $86.

Earlier last month, the Centre announced a cut in excise duty by Rs 1.50 a litre.

Additionally, the state-owned oil marketing companies had been mandated to reduce the prices of petrol and diesel by Re 1 a litre.