Diesel price cut by 30p to 32p today; Mumbai sees major relief, check rates of Kolkata, Chennai, New Delhi

Unlike petrol price, the state-owned OMCs reduced diesel price at much lower rate by 30 paisa to 32 paisa per litre each in various state capitals of India. In the past, diesel prices were stuck in the range of Rs 50 to Rs 60 per litre, but with the start of 2018, there is no stopping the rate hike in this crucial product, which still remains at record high. The rise was an outcome of higher crude oil prices and no relief in excise duty and Value Added Tax (VAT) which left no room for OMCs. However, ahead of elections the OMCs have trim down prices of diesel for 10th consecutive day, so much so, that a Rs 1 litre cut has been given so far, especially cities like Mumbai, Kolkata and Chennai have seen major revival in their diesel rates. Meanwhile, petrol price today were brought down in the range of 39 paisa to 42 paisa each per litre in the cities. 

For the Indian government, fuel is a major generator of revenue and that is why authorities have been reluctant to provide relief.

Today, diesel price in New Delhi was down to Rs 68.28 per litre, after a cut in rates by 30 paise, compared to previous day's price of Rs 68.58 per litre.

Similarly, diesel price in Kolkata was ruling at Rs 70.83 per litre today, which was down 30 paise against previous day's price of Rs 71.13 per litre. This city has clocked over Rs 72 per litre rate after Mumbai and Chennai respectively.

India's financial hub Mumbai saw a cut of 32 paise in diesel price and is now selling at new price of Rs 72.70 per litre as against Rs 73.02 per litre of previous day.

In Chennai, the price was also below 32 paise and available at Rs 72.08 per litre on Saturday, compared to previous price of Rs 72.40 per litre.

Moreover, on Friday, international crude prices were once again on an upward spiral leading to renewed fears over widening fiscal deficit and rising inflationary pressure.

According to Reuters report, Brent crude futures was trading sharply higher at USD 76.69 a barrel in early Asian trade, driven up by supply woes as Venezuela struggles to meet its supply obligations and by ongoing voluntary output cuts led by producer cartel OPEC.

So far in 10 days, petrol price has come down by Rs 1 litre in the mentioned cities.