After a period of northward climb, petrol prices softened to their lowest level in 3 months while diesel prices touched a 2-month low. On Monday petrol price in New Delhi was Rs 76.52 per litre in Delhi, a fall of 19 paise, and diesel at Rs 71.39 per litre, a decrease of 17 paise. With this petrol has gone back to the August level, while diesel is hovering around levels seen in the first week of September.
Meanwhile, in Mumbai petrol was retailing 19 paise lower at Rs 82.04 per litre and diesel at Rs 74.79 after a decrease of 18 paise.
International crude oil prices began rising in mid-August, directly affecting petrol and diesel prices in India. When petrol touched Rs 90 a litre in some cities, the government intervened in early October and cut the excise duty on domestic petrol and diesel by Rs 2.5, followed by a equivalent relief by many state governments.
The prices of crude started easing after the United States recently softened its stand on Iran’s sanctions and gave its nod to eight countries to continue importing oil from Iran temporarily. The list of countries includes India, China, South Korea, Japan, Turkey, Italy, the United Arab Emirates, and Taiwan.
Traders expect Saudi Arabia to push OPEC to cut supply, which could lead to firming of prices.