Petrol rate cut by 22 paise, diesel by 23 paise as global oil prices soften

Petrol and diesel prices on Tuesday were cut for the third time within a week on the back of softening international oil prices.

Petrol price was cut by 22 paise per litre and diesel by 23 paise per litre, according to a price notification of state-owned fuel retailers.

Petrol now costs Rs 90.56 per litre in Delhi and a litre of diesel comes for Rs 80.87.

Rates have been reduced across the country and vary from state to state depending on the local incidence of taxation (VAT).

In Mumbai, the petrol price was cut to Rs 96.98 a litre on Tuesday from Rs 97.19, while diesel rates were reduced to Rs 87.96 from Rs 88.20, the price notification showed.

Fuel prices were reduced for the first time in six months on March 24, and thereafter on March 25 as well after international oil prices fell on prospect of speedy recovery in consumption getting clouded by the second wave of COVID-19 cases.

They had remained on freeze thereafter as global rates edged up after one of the world's most vital waterways clogged. The reopening of the Suez Canal cooled rates again.

In three reductions, petrol price has come down by 61 paise per litre and diesel by 60 paise.

Despite bouts of rate freeze, prices had gone up by a record Rs 21.58 per litre on petrol since the government raised excise duty in March last year. Diesel prices had increased by Rs 19.18 a litre.