Diesel Price Cut For The First Time In Nearly 6 Months

On Thursday, diesel prices were cut for the first time in close to six months after state-owned fuel retailers reduced retail selling rate by 16 paise per litre. Diesel in New Delhi was priced at Rs 73.40 per litre in the national capital, as against Rs 73.56 a litre a day ago.

Petrol prices, on the other hand, remained unchanged after seeing the second rally in rates beginning mid-August.

This is the first reduction in diesel price since mid-March when Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) froze their retail rates for 82 days to adjust a record hike in excise duty on auto fuels against falling international crude oil prices.

Between 7 June, that is when oil marketing firms resumed daily revision in prices, and 25 July, diesel prices were raised up by Rs 12.55 a litre. Diesel price has remained unchanged in the country since 25 July, except in Delhi where a reduction in VAT (value added tax) lowered the rate by Rs 8.38 per litre.

Petrol price went up by Rs 9.17 per litre between 7 June and 29 June before hitting a pause. The revision cycle again started on 16 August and rates have gone up by Rs 1.51 since then. In all, the petrol price has risen by Rs 10.68 since 7 June.