No relief in diesel prices today; Mumbai, Chennai, Kolkata rule over Rs 70 per litre
For Indian government, fuel is a major generator of revenue and that is why authorities have been reluctant to provide relief.
Just like petrol prices, the state-owned Oil companies decided to keep diesel prices unchanged today. On previous day, they reduced diesel prices after four days status quo, in range of 7 paise to 11 paise in various state capital of India. OMCs have been very cautious in trimming down diesel, despite international crude oil prices today extended falls from late last week after China threatened duties on American crude imports in an escalating trade dispute with Washington, while supply from OPEC and Russia is also expected to rise.
With many state elections expected in the late 2018s, it has become very important for the NDA government to bring in relief for fuel products prices which were at record high last month.
Today, diesel price in New Delhi was down to Rs 67.78 per litre.
Similarly, diesel price in Kolkata was ruling at Rs 70.33 per litre today. This city has clocked over Rs 72 per litre rate after Mumbai and Chennai respectively.
India's financial hub Mumbai was selling 1 litre diesel at Rs 72.13 today. This city last month clocked a record high of over Rs 73 per litre in diesel prices.
In Chennai, the product was available at Rs 71.54 per litre today.
Meanwhile, 1 litre diesel in other cities stood at Rs 68.87 in Bangalore, Rs 71.34 in Bhopal, Rs 72.65 in Bhubaneswar, Rs 65.82 in Chandigarh, Rs 68.11 in Dehradun, Rs 73.67 in Hyderabad, Rs 72.19 in Jaipur, Rs 67.93 in Lucknow, Rs 72.46 in Patna, Rs 73.18 in Raipur and Rs 71.17 in Srinagar.
According to a Reuters report, "Crude oil prices crashed as U.S.-China trade tensions escalated last Friday," said Benjamin Lu of Singapore-based futures brokerage Phillip Futures.
Therefore, US West Texas Intermediate (WTI) crude futures touched their lowest level since April, falling to $63.59 per barrel before edging back to $63.98 by 0635 GMT. That was still down $1.07, or 1.6 percent, from their last settlement.
Meanwhile, Brent crude futures down 46 cents, or 0.6 percent, at $72.98 per barrel.