Transport fuel prices continue to fall on global slide

Domestic fuel prices continued to decline on Sunday, with petrol down 40-41 paise and diesel rates slashed by 45-46 paise across major metros, in line with the downward trend in Brent crude oil, which has fallen below the $60 per-barrel-mark.

In the national capital, petrol was sold at Rs 74.84 per litre, as against Rs 75.25 on Saturday, according to data on the Indian Oil Corp`s website. In other key cities of Kolkata, Mumbai and Chennai, the fuel was priced at Rs 76.82, Rs 80.38 and Rs 77.69 per litre, respectively, against the previous levels of Rs 77.22, Rs 80.79 and Rs 78.12 per litre, respectively.

Fuel costs in India are impacted by global crude oil prices, as the country is a net importer of oil. Price determination is done on a daily basis under the dynamic pricing system. As per the country`s pricing mechanism, the domestic fuel prices depend upon the international fuel prices on a 15-day average and the value of the rupee.

The UK Brent crude is currently priced around $59 per barrel, down from the four-year high of $86.07 recorded on October 4. The cost of other key transportation fuel -- diesel -- too fell in tandem with petrol prices across the four metros. 

The fuel-type was priced at Rs 69.70 in Delhi, 46 paise lower than the Saturday`s level of Rs 70.16 per litre. In the country`s financial capital, Mumbai, diesel was sold at Rs 72.99 on Sunday as against Rs 73.48 on Saturday.

Similarly, in Kolkata and Chennai, it was priced at Rs 71.55 and Rs 73.63 per litre, respectively, compared to the previous respective levels of Rs 72.01 and Rs 74.13.