Fuel prices drop further as crude rates plunge
New Delhi, March 9 (IANS): Fuel prices dropped further after international crude oil went into a free fall due to major slump in demand following the global outbreak of coronavirus epidemic.
The price of petrol was cut by 24-27 paise a litre and that of diesel by 25-26 a litre across all major cities in the country on Monday.
Petrol now costs INR 70.59 per litre in Delhi, INR 76.29 per litre in Mumbai, INR 73.28 a litre in Kolkata and INR 73.33 per litre in Chennai after the price cut.
Similarly, diesel costs INR 63.26 a litre in Delhi, INR 66.24 a litre in Mumbai, INR 65.59 a litre in Kolkata and 66.75 per litre in Chennai, according to Indian Oil Corporation website.
International crude oil prices tumbled the most in decades overnight on Sunday. The collapse was triggered by sinking demand due to coronavirus scare worldwide.
Benchmark Brent was down by over 29 per cent and was trading at $32.28 per barrel, down by $13.22 per barrel, the biggest fall since the Gulf War in 1991 after Saudi Arabia decided to slash prices on its inventory.
The retail prices of fuel are dependent on the international crude prices and the rupee-US dollar exchange rate as India imports almost 80 per cent of its crude requirements.
Domestic petrol and diesel prices are reviewed by oil marketing companies on a daily basis. Price revisions are implemented at the fuel stations with effect from 6 a.m.