The petrol prices in the national capital have come down by Re 1 in the past 10 days from its record high of Rs 78.42 on May 29, while diesel has seen 72-paise decline in Delhi and 76 paise drop in Mumbai. According to Indian Oil Corporation's fuel price index, petrol prices fell by 21 paise to Rs 77.42 per litre in Delhi on Friday, while diesel also saw a 15-paise decline to Rs 68.58 per litre in the national capital.
In both Mumbai and Kolkata, the petrol prices dipped 21 paise to Rs 84.24 and Rs 80.07, respectively. In Chennai, petrol saw 22 paise decline to Rs 80.37. In the NCR region, petrol was priced at Rs 78.19 in Faridabad, Rs 77.94 in Gurugram, Rs 78.08 in Noida, and Rs 77.96 in Ghaziabad.
The diesel prices also dipped 15 paise in all metro cities, except Chennai where the prices dropped by 16 paise. In Delhi, diesel was priced at Rs 68.58, while Rs 71.13 in Kolkata and Rs 73.02 in Mumbai. In Chennai, diesel price dropped 22 paise to Rs 72.40. In the NCR, diesel was priced at Rs 69.71 in Faridabad, Rs 69.48 in Gurugram, Rs 68.78 in Noida, and Rs 68.64 in Ghaziabad.
Before cutting the prices, oil marketing companies last month hiked the fuel cost for 16 consecutive days. From May 13 to May 29, petrol price was raised by Rs 3.8 and diesel by Rs 3.38 per litre.
Indian petroleum prices are determined by the cost of crude oil in international market. Prices of crude oil began to shoot up last year when the organisation of oil exporting countries decided to withhold the excessive output, which had brought down the prices to the lowest in more than a decade. The countries slashed the overall fuel supply by about 1.8 million barrels per day that created the shortage of crude which in turn spiralled the prices.
However, it was reported, that the members from OPEC countries -- Saudi Arabia, the United Arab Emirates, Kuwait and Algeria -- this week met unofficially in Kuwait and agreed to lift the curb on crude supply. Following the report, the US crude prices on Monday touched its lowest level in nearly two months.
The organisation of the petroleum exporting countries are slated to meet formally later this month to decide whether the group and non-OPEC members will raise production to ease concerns over potential supply shortfalls from Iran and Venezuela. Venezuela's crude oil production fell nearly 13 per cent last year due to intense internal conflict.
Now, all eyes are on July-22 meet of the OPEC countries as the outcome of this meeting will decide the future price of crude oil prices. Earlier, Oil Minister Dharmendra Pradhan had also said that the government was concerned about pinching fuel prices and was working on a long-term solution. He said that the present oil price jump is due to three main factors -- hike in the international price of crude, fluctuation in the dollar and Indian currency ratio, and some of the tax issues.