New Delhi | Jagran Business Desk: Riding on softening global crude prices, the fuel rates in India were slashed for the second time in a week on Tuesday. While petrol prices were reduced by 19-22 paise, diesel came down by 21-23 paise across the country. 

Tuesday's price revision has brought down petrol price in Delhi to Rs 90.56 from Monday's Rs 90.78, a reduction of 22 paise. Meanwhile, a litre of diesel in the national capital will now cost Rs 80.87 as compared to Rs 81.10 on Monday.

Fuel prices have come down in metro cities too. A litre of petrol in Mumbai, Kolkata and Chennai now costs Rs 96.68, Rs 90.77 and Rs 92.58 respectively. Similarly, the per litre price of diesel in Mumbai, Kolkata and Chennai has been slashed to Rs 87.96, Rs 83.75 and Rs 85.88 respectively. 

On March 25, oil companies had cut petrol and diesel prices by 21 paise and 20 paise respectively. The second cut in prices within a week means that if global crude prices drop further, OMC are likely to pass the benefits to the consumers. 

The fall in oil prices comes after a blockage at strategic Suez Canal spooked global Impex industry, while a massive wave of COVID-19 infections continued to impact large parts of Europe. Resultantly, global fears have resurfaced on the slowdown economic recovery due to this wave.

At present, crude prices are reacting to the negative news flows. The Brent crude futures slipped to $63 levels a barrel on Monday. Similarly, the US crude traded lower. The WTI crude oil traded lower by 1.05 per cent at $59.92, while Brent is down by 0.78 per cent at $63.65 levels. However, the surge in domestic COVID cases will also weaken the rupee. Consequently, lower crude oil cost will dampen domestic petrol and diesel prices.

In India, the exorbitant fuel prices are because of the heavy taxes levied by the central and state governments. It may be noted that nearly 60 per cent of the price of petrol and diesel in India comprises taxes.

Posted By: Abhinav Gupta