Petrol diesel, LPG and ATF to cost less as OMCS cut fuel prices
02 March 2020
State-run oil marketing companies have reduced the prices of petrol and diesel to levels reaching 6-month to 8-month lows in the wake of a fall in the prices of crude oil in the international markets thanks to the spread of the corona virus to more than 60 countries.
Retail prices of petrol in the metros have been cut by 15 to 18 paise per litre today, in a second successive day of reduction of fuel prices. Diesel prices saw a sharper cut, by about 20 to 26 paise per litre in the metros. In Delhi, petrol prices fell to Rs71.71 per litre, which is the lowest price in about six months. In the three other metros of Kolkata, Mumbai and Chennai, petrol today sells at Rs74.38, Rs77.4 and Rs74.51 a litre, respectively.
Diesel is being sold at Rs64.3 a litre in Delhi, the lowest price in about eight months. In Kolkata, Mumbai and Chennai, diesel is being sold at Rs66.63, Rs67.34 and Rs67.86 a litre, respectively.
Petrol and diesel prices in India depend on the international crude prices, the rupee-US dollar exchange rate, local taxes (excise duty and VAT) and other factors like freight charges, dealer commission and margins of oil marketing companies. India imports about three-fourth of its crude requirements.
The global benchmark Brent crude dropped 14% for this week to its lowest levels since July 2017, closing at $50.52 a barrel on Friday.
Analysts expect travel restrictions and factory shutdowns caused by coronavirus to shave 400,000 barrels a day from global consumption growth, which would take the industry to its lowest level of consumption in a decade.
Indian Oil Corporation (IOC), the largest among state-run oil refiners and distributors, also announced a Rs50per cylinder reduction in the price of non-subsidised cooking gas LPG, from 1 March.
In metros, the rates were lowered by Rs 53-56.5 per cylinder from 1 March. Accordingly, a cylinder (14.2kg) of LPG would cost the consumer Rs776.5 and Rs805.5, respectively, in Delhi and Mumbai against the existing Rs858.5 and Rs829.5, respectively, per cylinder at present.
Non-subsidised LPG Cylinder Price In Metros
Also, from 1 March, the prices of 19-kg cylinders were revised to Rs1,381.50 per unit in Delhi and to Rs1,331.00 in Mumbai, from Rs1,466.00 and Rs1,540.50 respectively, according to data from Indian Oil.
The marginal relief in LPG prices comes days after oil minister Dharmendra Pradhan said the rates prices may come down in March, and that the hike in February was due to the international market. "There are indications that the prices may come down next month," the minister had said on February 19.
OMCs also announced reduction in the domestic price of aviation turbine fuel (ATF) by around 10 per cent on Sunday, giving some relief to coronavirus-hit airlines.
The latest decline is seen as the biggest fall in ATF prices in the last four or five months, airline officials said.
The downward revision comes at a time when the domestic industry is bracing for a traditionally tepid quarter, when air travel takes a downswing, thanks to school examinations and corporates being busy with the financial year-end.