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    Fuel prices slide further after Diwali

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    Omkar Thakur

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    Fuel prices slide further after Diwali

    After the central government announced the excise duty cut earlier this month to rein in the fuel prices across the country, the prices of petrol and diesel have decreased steadily. Fuel prices, which have been deregulated, are calculated on a daily basis depending upon the cost of crude in the global market.

    After crossing Rs 90 per litre in the first week of October, the fuel prices have reduced with the rupee finding a foothold and the global crude prices decreasing gradually. A large chunk of India’s oil is imported from Iran which has now been put under international sanctions by the US due to their nuclear activities. India’s Iran oil deal has been a big saviour of the economy as India does not need to pay in US Dollars and thus saving us valuable foreign exchange.

    Fuel prices in Delhi have gone well below Rs 80 with petrol being retailed at Rs 78.21 and diesel at Rs 72.81. Mumbai continues to quite expensive as the state taxation has led to the retail price of Rs 83.72 and Rs 76.38 for petrol and diesel respectively. Fuel prices are expected to hover in this range as India has availed exceptions from the Iran sanctions and also the $75 billion forex deal with Japan should help the Rupee retain its value.

     

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