Fuel prices cut for 12th straight-day: Petrol below Rs-80 mark in Delhi

With consecutive cuts in fuel prices, cost of petrol has come down by Rs 3.08 per litre in Delhi. Diesel price has fallen by Rs 1.64

Prices of the key transportation fuels - petrol and diesel - were cut for the 12th straight day on Monday over softening international oil prices.

Petrol price is down 30 paise per litre and diesel by 20 paise per litre across major cities.

In New Delhi, petrol now costs Rs 79.75 a litre, down 30 paise from Sunday's rate of Rs 80.05.

According to a price notification issued by state-owned oil firms, petrol is now being retailed at Rs 85.24 in Mumbai, Rs 82.86 in Chennai and Rs 81.63 in Kolkata.

In 11 straight cuts, petrol price has been reduced by Rs 3.08 per litre and diesel by Rs 1.64 a litre.

In tandem with petrol prices, diesel price is down by around 20 paise. 

The price of diesel in Mumbai is down at Rs 77.40 per litre.

Similarly, prices of diesel in Delhi, Kolkata and Chennai declined to Rs 73.85, Rs 75.70 and Rs 78.08 a litre respectively.

The consecutive cuts in fuel prices come on the back of falling international oil prices and appreciation in rupee.

Before fuel rates started falling on October 18, petrol and diesel prices had touched unprecedented levels across the country. While petrol touched a record high of Rs 84 per litre, diesel prices went up to Rs 75.45 a litre in Delhi on October 4. On that day, the government decided to cut excise duty on petrol and diesel by Rs 1.50 per litre each and asked state-owned fuel retailers to subsidise by another Re 1 a litre by reducing their margins.

But as the international oil prices continued to rise, price of petrol and diesel in Delhi increased to Rs 82.83 per litre and Rs 75.69 per litre by October 16. But beginning October 18, international oil prices have been falling and rupee has also appreciated.

The retail selling price of petrol and diesel is dependent on the international prices of benchmark fuel and the rupee-US dollar exchange rate. This is because a large proportion of country's requirement is met through imports.