After a constant hike for 16 days, petrol and diesel prices cut by 1 paisa on Wednesday. Fuel prices have seen a sharp rise soon after the polling concluded in Karnataka assembly elections. The price of petrol has shot up by Rs 3.79 per litre and that of diesel by Rs 3.37 after the oil marketing companies ended their 19-day price freeze in the run up to Karnataka polls.
On May 30, the price of petrol in the national capital was at Rs 78.42 and the diesel was retailing at Rs 69.30. In the financial hub of Mumbai the prices of petrol and diesel were at Rs 86.23 and Rs 73.78, respectively. Earlier in a faux pas, the Indian Oil Corporation website showed the price of petrol in Delhi down by 60 paisa to Rs 77.83 and diesel by 56 paisa to Rs 68.75.
The international crude prices were down on Tuesday after Saudi Arabia and Russia said that they were ready to ease supply curbs that have pushed crude prices to their highest since 2014. Last year, the organization of the Petroleum Exporting Countries and Russia decided to cut the supply to tighten the market and prop up the prices after they (prices) had fallen to their lowest in more than a decade.
“The reduction was supposed to be 1 paisa but due to a clerical error the price prevalent on May 25 was communicated as today’s price,” a senior official of Indian Oil Corp (IOC), the nation’s largest fuel retailer, explained.
After the 1 paisa cut, petrol in Delhi now costs Rs 78.42 per litre and diesel Rs 69.30.
“There is a softening in international oil prices and rupee has strengthened against the US dollar, making imports cheaper. All this will reflect in reduction in retail rates in coming days,” he said.