Fuel prices continue to drop due to softening of Brent crude

Oil rig and support vessel on offshore area. (Photo: iStock)


Prices of petrol and diesel saw a marginal dip on Tuesday, according to Indian Oil website. The price of fuel has been on a declining trend over past few days due to softening of international crude oil rates as demand declined following the outbreak of coronavirus in China.

On Tuesday, the price of petrol and diesel was cut by 12 paise and 14 paise respectively, across all major cities.

In Delhi, petrol prices were at Rs 73.60 a litre and diesel was at Rs 66.58 a litre.

In Mumbai, petrol retailed at Rs 79.21 a litre and diesel at Rs 69.79 a litre. In Kolkata petrol prices were at Rs 76.22 a litre and diesel was at Rs 68.94 per litre. Chennai also witnessed a similar decrease in petrol and diesel rates at Rs 76.44 a litre and Rs 70.33 a litre respectively.

The rising number of coronavirus cases and lockdown of several cities in China have impacted crude demand in that country. China is the second-largest consumer of crude oil.

The fuel prices are further expected to drop in the coming days as people are restricting their travel plans to China leading to a decrease in demand.

Retail prices of fuel in India are dependent on the international crude prices and the rupee-US dollar exchange rate. India imports almost 80% of its oil 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.

(With input from agencies)