Fuel prices were slashed across the country on Thursday, November 4, after the government reduced excise duty to bring retail rates down from record highs. The decision was made by the Centre on the eve of Diwali.
As per Indian Oil Corporation, petrol prices in the national capital fell 6.07 to 103.97, while diesel prices fell 11.75 to 86.67. After seven consecutive hikes, petrol and diesel prices in Delhi reached an all-time high of 110.04 and 98.42 per liter on Wednesday.
The move to reduce excise duty on fuel prices could cost the government 1.4 lakh crore per year. As per the state-run oil refiner, Mumbai has the highest fuel prices of the four metro cities. In Mumbai, a liter of petrol costs 109.98 rupees, while diesel costs 94.14 rupees. Petrol prices in Chennai have fallen below 102 cents per liter and are now sold at 101.40 cents, while diesel prices are at 91.43 cents Fuel prices vary by state due to value-added tax, or VAT. State-run oil refineries such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum adjust fuel prices daily, taking into account international crude oil prices and rupee-dollar exchange rates.
Oil prices fell further around the world, with U.S. futures falling below $80 a barrel after Iran and world powers agreed to resume nuclear talks this month, potentially leading to the lifting of US sanctions on Iranian oil, boosting global supplies. For the third day in a row, West Texas Intermediate crude fell 92 cents, or 1.1 percent, to $79.94 a barrel. In January Brent crude futures fell another 80 cents, or 1%, to $81.19 per barrel