According to a notification released by state-run oil retailers on Sunday (4 November), petrol prices were reduced by 21 paise, and diesel was made cheaper by 17 paise, Press Trust of India (PTI) has reported .
With international oil prices stabilising, petrol prices in India have seen a reduction of as much as Rs 4 per litre over the past 18 days. Also, diesel prices have seen a cut of Rs 2.33.
In September 2018, petrol prices breached previous records with consumers having to shell out as much as Rs. 89.69 per litre in Mumbai and Rs 82.32 in Delhi. The high prices in Mumbai can be attributed to the high rate of Value-Added Tax (VAT) imposed by the state government.
Rates have been declining since 18 October. Petrol in Delhi now costs Rs 78.78 per litre while diesel is at Rs 73.36. Petrol in Mumbai costs Rs 82.28 and diesel Rs 76.88.
Since India imports nearly 80 per cent of its fuel requirements, domestic petrol and diesel prices have heavily influenced by global geopolitical and economic conditions.
To rein in the rising prices, the NDA government had cut the rates by Rs. 2.5 per litre in both petrol and diesel. It also asked state governments to respond with VAT reductions.
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