Petrol and Diesel Prices Slashed

To make the arrival of 2016 even happier, Oil Marketing Companies (OMCs) have cut down the fuel prices by 63 paise for petrol and Rs. 1.06 for diesel. These prices came into effect with the start of 2016. So now, the petrol costs Rs. 59.35 per litre while diesel costs Rs. 45.03 per litre in Delhi. This decrease in prices comes as a result of a fortnightly revision to align the fuel prices in the international and domestic market. Two weeks ago, petrol and diesel prices were cut down by 50 paise per litre and 46 paise per litre respectively. Last time, there was a decrease of 58 paise per litre for petrol and 25 paise per litre for diesel on December 1. The fuel prices were last increased in the month of November by 36 paise for petrol and 87 paise for diesel.

According to reports, the fuel prices could have been decreased by Rs. 2 per litre but the fuel retailers have not done so as the government might raise the excise duty on these fuels to generate more revenue. The excise duty on petrol and diesel saw a total increase of Rs. 9.45 on petrol and Rs. 6.90 on diesel in 2015. In the last month of the year, the price of crude oil showed a drastic decrease, from Rs. 2725 to Rs. 2304 per barrel. The fuel prices could have gone down further if the Indian rupee had not been depreciating. Indian Oil Corporation Ltd. (IOC) said in a statement, "The current level of international product prices of petrol and diesel and INR-USD exchange rate warrant a decrease in prices, the impact of which is being passed on to the consumers with this price revision."

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