Petrol prices have been reduced by Rs 3.02, while diesel prices have gone up by Rs 1.47 yesterday. Petrol in Delhi costs Rs 56.61 per litre as compared to Rs 59.63 and diesel Rs 46.43 as against Rs 44.96.
The change in prices is to align them with international prices and adjusting for foreign exchange rates. While this is the seventh successive price reduction in petrol, the diesel price hike is the second in February itself. The price of petrol was decreased by 32 paise per litre on February 18 and diesel price was hiked by 28 paise a litre last time.
According to Indian Oil Corp (IOC), one of India’s largest fuel retailer, "The current level of international product prices of petrol and diesel and Rupee-US Dollar exchange rate warrant decrease in price of petrol and increase in price of diesel, the impact of which is being passed on to the consumers with this price revision. The movement of prices in the international oil market and Rupee-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes."
The current increment in diesel price is in line with global trends. The changes in fuel price also depend on the depreciation of the Rupee against the US Dollar. The prices in petrol and diesel are reviewed by oil firms every fortnight leading to an increase or decrease in prices. This subsequent revision in fuel prices depends on the average imported cost and rupee-dollar exchange rate in the previous fortnight.