State-run fuel retailers have cut the price of petrol by about 3.5 per cent, effective today. A litre of petrol in Delhi will now cost Rs 67.78, while in Mumbai the cut is slightly more at Rs 3.10 thanks to more state-level taxes. The highest cut is for Bengaluru and Hyderabad, that have higher taxes. Both cities will have to pay Rs 3.22 less for every litre of petrol.
While this is a good move from the state-run companies, we still are cautious about how long this will last. As of tomorrow, India will be purchasing Iranian oil on a cost, insurance and freight basis, which is more expensive than getting Indian shipping companies to transport the crude oil, as it has done so far. This will increase India's oil import bill, and the cost will have to be passed on to the consumer eventually.
