Petrol price on Sunday, 30 December, was cut by 22 paise per litre to its lowest level in 2018 while diesel rates were reduced by 23 paise to a nine-month low.
Petrol price in Delhi was cut to Rs 69.04 per litre from Rs 69.26 while diesel rates came down to Rs 63.09 from Rs 63.32 a litre, according to the price notification of state-owned oil firms.
Petrol prices, which have been on a decline since 18 October except for one day, are at their lowest level of 2018. Diesel rates are at their lowest since March-end.
In all, petrol price has fallen by Rs 13.79 per litre since 18 October, more than negating all of the hike that was witnessed in the two-month period beginning mid-August.
Diesel prices have declined by Rs 12.06 per litre in two-and-half months.
Petrol price had touched a record high of Rs 84 per litre in Delhi and Rs 91.34 in Mumbai on 4 October. Diesel on that day had peaked to Rs 75.45 a litre in Delhi and Rs 80.10 in Mumbai.
Prices had started to climb from 16 August.
Petrol in Delhi was priced at Rs 77.14 and in Mumbai at Rs 84.58 per litre on 15 August. Diesel on that day was priced at Rs 68.72 per litre in Delhi and Rs 72.96 in Mumbai.
Between 16 August and 4 October, petrol price was hiked by Rs 6.86 per litre and diesel by Rs 6.73.
On that day, the government decided to cut excise duty on petrol and diesel by Rs 1.50 per litre each and asked state-owned fuel retailers to subsidise the price by another Re 1 a litre by reducing their margins.
Subsequent to this, the petrol price moderated to Rs 81.50 per litre in Delhi and diesel to Rs 72.95 a litre on 5 October. In Mumbai, rates fell to Rs 86.97 per litre for petrol and Rs 77.45 in case of diesel.
As the international oil prices continued to rise, price of petrol and diesel in Delhi increased to Rs 82.83 and Rs 75.69 on 17 October. In Mumbai, rates touched Rs 88.29 a litre for petrol and Rs 79.35 for diesel.
But since then, international oil prices have been falling and rupee has also appreciated, resulting in a decline in retail rates.
During the last two and half months, petrol price rose on just one day - by 10 paise on 18 December. Diesel rates rose on 17 and 18 December by 9 paise and 7 paise respectively.
Industry sources said as per the assessment, the retail prices of petrol and diesel may reign easy in the next few days.
The retail selling price of petrol and diesel is dependent on the international prices of benchmark fuel and the rupee-US dollar exchange rate.
This is because a large proportion of the country's requirement is met through imports.
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