The Centre on Wednesday cut fuel prices in the country for the first time in over a year, in the run-up to the assembly elections in West Bengal, Assam, Kerala, Tamil Nadu, and Puducherry.
The fuel prices, which last month hit record highs including crossing Rs 100 mark in some places in Rajasthan, Maharasthra and Madhya Pradesh, had been on freeze since February-end when elections to five states were announced.
In the latest move, petrol price was cut by 18 paise per litre and diesel by 17 paise a litre as international oil prices tumbled to the lowest since early February.
Petrol price was cut to Rs 90.99 a litre in Delhi from Rs 91.17 per litre, according to a price notification of state-owned fuel retailers. Diesel now comes for Rs 81.30 a litre in the national capital, down from Rs 81.47 previously.
Rates have been reduced across the country and vary from state to state depending on the local incidence of taxation (VAT).
In Mumbai, a litre of petrol now costs Rs 97.40 while the same quantity of diesel can be bought at Rs 88.42. One litre of petrol in Kolkata costs Rs 91.18 and the diesel price is Rs 84.18 per litre.
The cost of one litre of petrol in Chennai is Rs 92.95 while the same quantity of diesel costs Rs 86.29 on 24 March. Till 23 March, the fuel prices in Chennai were Rs 93.11 and Rs 86.45 for one litre each of petrol and diesel, respectively.
Petrol price in the city of Sri Ganganagar in Rajasthan is still over Rs 100. While diesel costs Rs 93.60.
This is the first reduction in fuel prices in over a year as the prices were last reduced on 16 March, 2020. Previously, despite bouts of rate freeze, prices had gone up by a record Rs 21.58 per litre on petrol in the last one year. Diesel prices had increased by Rs 19.18 a litre.
The rate reduction followed international oil prices tumbling to the lowest since early February as the second wave of COVID-19 infection clouded the prospects for a speedy recovery in consumption.
West Texas Intermediate for May delivery was down to $57.76 in New York on Tuesday, the lowest close since 5 February while Brent for the same month lost $3.83 to $60.79 a barrel, the lowest since
With inputs from PTI
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