After the revision, petrol in Delhi will be Rs 61.20 a litre, including local taxes; diesel will be Rs 44.45 a litre. Both prices were earlier revised on August 15, when petrol prices were cut by Rs 1.27 a litre and diesel by Rs 1.17 a litre.
“Since then, there has been a decrease in international prices of both. However, the rupee-dollar exchange rate has depreciated in this period (making these costlier). The (combined) impact (still) warrants a downward revision, the impact of which is being passed on to consumers,” stated Indian Oil Corporation, the nation’s largest fuel retailer.
Brent, benchmark for half the world’s oil, had last week slumped to less than $45 a barrel, while the US West Texas Intermediate had slipped below $40 a barrel, lowest in six and a half years, owing to the rout in world equity markets on concerns over Chinese economic growth. Brent has since recovered by around 10 per cent to $49 a barrel.
"Since the last price change, there has been a decrease in international prices of both petrol and diesel. However, the Rupee-Dollar exchange rate has depreciated during this period. The impact of both these factors warrants a downward revision in prices, the impact of which is being passed on to the consumers with this price decrease," Indian Oil Corp (IOC), the nation's largest fuel retailer said in a statement.
It added the movement of prices in the international oil market and the Rupee-Dollar exchange rate will continue to be monitored closely and the developing trends of the market will be reflected in future price changes.
Brent, the benchmark for half the world's oil, had last week slumped to less than $45 per barrel while the US West Texas Intermediate (WTI) had slipped below $40 per barrel, the lowest in six-and-a-half years, owing to the rout in the world equity markets on concerns over Chinese economic growth. Brent has recovered by around 10 per cent to $49 per barrel since then.