While globally, the US crude oil prices have fallen as much as 18 percent in the past two weeks on the back of a surge in supply and increasing concerns about an economic slowdown, fuel prices in India have fallen about 2 percent in the same time period.
According to the Indian Oil Corp data, petrol prices have fallen 2.3 percent or Rs 1.92 per litre while diesel prices have slumped about 2 percent or Rs 1.68 per litre in Mumbai.
Petrol prices in Kolkata, Mumbai and Chennai, were at Rs 79.36 per litre, Rs 82.94 per litre and Rs 80.42 per litre, respectively, while diesel stood at Rs 74.05 a litre in Kolkata, Rs 75.64 in Mumbai and Rs 76.30 a litre in Chennai.
Among the four major metro cities, the National Capital Region has the lowest rates for petrol and diesel as it is the only state with the lowest tax rate. Petrol and diesel prices in the Delhi NCR were at Rs 82.94 per litre and Rs 75.64 per litre on Wednesday.
As per the country's pricing mechanism, under the daily dynamic pricing regime, domestic fuel prices depend on international fuel prices on a 15-day average, besides the value of the rupee.
Last month, the centre announced a cut in excise duty by Rs 1.50 a litre. Additionally, the state-owned oil marketing companies had been mandated to reduce the prices of petrol and diesel by Re 1 a litre.
On Wednesday, the US oil markets fell by more than 7 percent the previous day. They have lost over a quarter of their value since early October in what has become one of the biggest declines since prices collapsed in 2014.
The Organisation of the Petroleum Exporting Countries (OPEC), led by top exporter Saudi Arabia has been making increasingly frequent public statements that it would start withholding crude in 2019 to tighten supply and prop up prices. A decision might be taken at the December 6 meeting.
First Published: IST