Petrol and diesel rates were cut by oil marketing companies (OMCs) on Thursday as global crude oil prices continue to weaken. This was the second straight day of fuel price cut by OMCs after rates were slashed for the first time in 2021 on Wednesday.
Petrol rates have been cut by 21 paise, while diesel prices in the country have been lowered by 20 paise.
Following the cut, a litre of petrol in Delhi costs Rs 90.78, down from Rs 90.99 on Wednesday. Prices have also dropped in cities like Kolkata (Rs 90.98), Mumbai (Rs 97.19), Chennai (Rs 92.77), Bengaluru (Rs 93.28), Hyderabad ( Rs 94.39) and Jaipur (Rs 97.31).
Meanwhile, a litre of diesel in Delhi is retailing at Rs 81.10, down 20 paise from Wednesday. It has also dropped in other cities including Mumbai (Rs 88.20), Chennai ( Rs 86.10), Kolkata ( Rs 83.98), Bengaluru (Rs 85.99) and Hyderabad (Rs 88.45).
Domestic fuel prices could drop further in the event of continued weakness in international crude oil rates. The falling rates of petrol and diesel is a positive development as it is likely to ease inflation, which rose above 5 per cent in February.
Higher fuel prices have also made several other commodities and services more expensive. While OMCs now seem to be passing on the benefit of lower international crude oil prices, it is not enough to provide relief to citizens and millions of businesses.
Experts say that both the Centre and state governments need to figure out a way to the high rate of fuel tax levied in the country. Nearly 60 per cent of the price paid towards petrol and diesel comprises various taxes.
Finance Minister Nirmala Sitharaman has acknowledged that rising fuel prices are becoming a burden for citizens in the country and added that Centre and state governments will have to discuss the matter thoroughly to find a solution to provide relief.
Although several news reports indicate that the government may slash taxes on petrol and diesel soon, no official timeline has been shared by authorities yet.