Relief to consumers as petrol price slashed by Rs 8.69, diesel by Rs 7.05

Petrol, Diesel Prices Today: Petrol price on Sunday was slashed by Rs 8.69 a litre and diesel by Rs 7.05 per litre following the government cutting excise duty on auto fuels to give relief to consumers battered by high fuel prices.

Finance Minister Nirmala Sitharaman had on Saturday announced a cut in excise duty on petrol by 8 per litre and 6 rupees per litre on diesel.

This cut led to a reduction of ₹ 9.5 a litre on petrol in Delhi and ₹ 7 a litre in diesel after taking into account its impact on other levies. Petrol prices in Delhi today came down to ₹ 96.72 a litre as against ₹ 105.41 a litre earlier. Diesel in the national capital now costs ₹ 89.62 a litre as against the earlier prices of ₹ 96.67 per litre.

In Mumbai after the excise duty cut, petrol now costs ₹ 111.35 per litre while diesel is priced at Rs 97.28 a litre.

The excise duty cuts along with a ₹ 5 cut on petrol and ₹ 10 reductions on diesel which was implemented from November 4, 2021, roll back the ₹ 13 per litre and Rs16 per litre increase in taxes on petrol and diesel, respectively, effected between March 2020 and May 2020 to avoid passing on to consumers the sharp fall in international oil prices.

Fuel prices though are still the highest in Mumbai among the four metro cities.

Fuel rates vary from state to state depending upon the incidence of local taxation.

Meanwhile the Petroleum Ministry's Petroleum Planning and Analysis Cell's (PPAC) latest report released on May 20, 2022 shows that the price of crude oil (Indian Basket) remained high at $107.15 per barrel on May 19, 2022, at an exchange rate (Rs/$) of Rs.77.70.

State-run oil refiners such as Indian Oil, Bharat Petroleum and Hindustan Petroleum revise the fuel rates on a daily basis, by taking into account the crude oil prices in the international markets, and the rupee-dollar exchange rates. Any changes in petrol and diesel prices are implemented with effect from 6 am every day.

India is 85 per cent dependent on imports to meet its oil needs and the domestic petrol and diesel prices are linked to international rates.