Petrol Down By 16 Paise, Diesel By 14 Paise

The government on Thursday lowered the prices of petrol by 16 paise per litre and diesel by 14 paise per litre in the fourth minor rate cut in three weeks that followed six months of hike.

Petrol now costs Rs 90.40 per litre in Delhi, down from Rs 90.56, according to a price notification of state-owned fuel retailers. A litre of diesel comes for Rs 80.73 per litre as against Rs 80.87 previously. The rates have been reduced across the country and vary across states, depending on the local incidence of taxation (VAT).

The fuel prices were reduced for the first time in six months on March 24 after international oil prices fell on the prospect of speedy recovery in consumption getting clouded by the second wave of Covid-19 cases.

In all, rates were reduced on three occasions, the last being on March 30. They had remained on freeze thereafter as global rates edged up.

In three reductions, the petrol price has come down by 61 paise per litre and diesel by 60 paise. After Thursday’s price cut, the total reduction comes to 67 paise in case of petrol and 74 paise for diesel.

Despite bouts of rate freeze, the 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.