Lower crude prices help cos cut rates for 4th straight day

New Delhi, Oct. 21: Petrol and diesel prices were cut for the fourth straight day on softening international oil prices, providing some relief to consumers battered by two months of relentless rate hikes.

Petrol price was cut by 25 paise a litre and diesel by 17 paise, according to the price notification of state-owned oil firms.

In Delhi, petrol now costs `81.74 a litre and diesel is priced at `75.19 per litre. In Mumbai, petrol is sold for `87.21 per litre and diesel at `78.82.

Fuel prices have been declining since Thursday as oil companies factored in softening of international rates. In four days, petrol price has been cut by `1.09 per litre and diesel by 50 paise.

State-run oil marketing companies (OMCs) Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum revise fuel prices with effect from 0600 hrs on a daily basis.

The rates were reduced by a minimum `2.50 per litre across the country on October 5, when the government cut excise duty on petrol and diesel by `1.50 a litre and asked oil PSUs to subsidise the fuels by another `1 a litre.

The reduction in BJPruled states was more as they matched this cut by an equivalent reduction in local sales tax or VAT.

The price cut follows international oil prices trading near the lowest level in a month on a bigger-than-expected gain in American stockpiles.

On Friday, West Texas Intermediate for November delivery settled at $69.12 a barrel on the New York Mercantile Exchange, while Brent for December settlement was at $79.78 a barrel on the London-based ICE Futures Europe exchange. Brent had earlier this month hit a four-year high of $86.74 a barrel.