Fuel prices dip further due to softening of Brent crude

Fuel prices saw a marginal dip on Tuesday due to softening of international crude oil rates as demand declined following the outbreak of coronavirus in China. The price of petrol was cut by 12 paise and that of diesel by 14 paise across all major cities on Tuesday.

The petrol now costs Rs 73.60 a litre in Delhi, Rs 79.21 a litre in Mumbai, Rs 76.22 a litre in Kolkata and Rs 76.44 a litre in Chennai after the price cut.

Similarly, diesel costs Rs 66.58 a litre in Delhi, Rs 69.79 a litre in Mumbai, Rs 68.94 per litre in Kolkata and Rs 70.33 a litre in Chennai, according to the Indian Oil Corporation website.

The rising number of coronavirus cases and lockdown of several cities in China have impacted crude demand in that country. China is the second-largest consumer of crude oil.

Petrol and diesel prices in India might fall further in the coming days as people are restricting their travel plans to China leading to a decrease in demand.

The retail prices of fuel are dependent on the international crude prices and the rupee-US dollar exchange rate as India imports almost 80 percent of its crude requirements.

Domestic petrol and diesel prices are reviewed by oil marketing companies on a daily basis. Price revisions are implemented at the fuel stations with effect from 6 am.