Time To Tank Up: Petrol, Diesel Prices Drop Again; Further Slump Expected

Time To Tank Up: Petrol, Diesel Prices Drop Again; Further Slump ExpectedA petrol pump in India (Photo by Karen Dias/Bloomberg via Getty Images)

Petrol and diesel prices are now at their lowest since the last few months, with crude oil prices touching a one-year low following seven consecutive weeks of losses, reports Live Mint.

Prices of both petrol and diesel got reduced by 32 paise and 40 paise, respectively, on Saturday (24 November). The price of petrol in Delhi is the lowest since June, the same is true for Mumbai as well. Petrol costs Rs 75.25 per litre in Delhi, Rs 80.79 in Mumbai, Rs 75.84 in Bengaluru, Rs 78.12 in Chennai and Rs 77.22 in Kolkata.

However, diesel is priced at Rs 70.16 in Delhi, Rs 73.48 in Mumbai, Rs 74.13 in Chennai and Rs 72.01 in Kolkata. A fall in the rupee, which was then hovering above Rs 74 against the US dollar and is currently below 71, has also made crude imports cheaper for India.

The price cut is expected to get higher in the next few days. Crude oil has slumped by about 8 per cent. Brent crude futures dropped down $3.80 a barrel, or 6.1 per cent, at $58.80. US West Texas Intermediate crude (WTI) lost 7.1 per cent, to trade at $50.42, which is also the weakest since October 2017.

Unless the Organisation of Petroleum Exporting Countries (OPEC) decides to cut down supply in its meeting on 6 December, crude oil is unlikely to move out of the bearish territory soon.