1 paisa cut in diesel price; Know what you are paying today
It needs to be noted that for the Indian government, fuel is a major generator of revenue and that is why authorities have been reluctant to provide relief to consumers.
Diesel price has been cut, but it will not really bring any relief. The state-owned Oil Companies trimmed diesel price by 1 paisa per litre in various state capitals of India. This marginal cut was after 16 days' of aggressive hikes. However, there is nothing to be excited about the cut made in because rates are still at record high levels. There was a time when diesel prices were stuck in the range of Rs 50 to Rs 60 per litre, but since the start of 2018, there is no stopping the rate hikes in this crucial product. Now, three top metro cities are charging you over Rs 71 per litre, as in Mumbai and Chennai the rates are higher than Rs 73 per litre, while Kolkata is just marginally away from joining the club of Rs 72 per litre.
These are the levels no one has ever witnessed. It needs to be noted that for the Indian government, fuel is a major generator of revenue and that is why authorities have been reluctant to provide relief.
Today, diesel price in New Delhi was raised to Rs 69.30 per litre, down by 1 paise compared to previous day's price of Rs 69.31 per litre.
Similarly, diesel price in Kolkata was ruling at Rs 71.85 per litre today, which is down 1 paise against previous day's price of Rs 71.86 per litre. This city would be third to clock over Rs 72 per litre rate after Mumbai and Chennai respectively.
India's financial hub Mumbai saw below of 1 paise in diesel price and is now selling at new price of Rs 73.78 per litre as against Rs 73.79 per litre of previous day.
Chennai also entered the Rs 73 per litre club after Mumbai, as the price was lower by 1 paise available at Rs 73.17 per litre on Monday, compared to previous price of Rs 73.18 per litre.
Moreover, international crude oil prices inched down on Wednesday amid concerns that Saudi Arabia and Russia will pump more crude in the second half of the year in response to falling global crude inventories and rising consumer prices.
Therefore, Brent crude was down 45 cent, or 0.6 percent, at $74.94 a barrel at 0325 GMT, after settling up 9 cents on Tuesday. U.S. West Texas Intermediate crude was down 24 cents, or 0.34 percent, at $66.49 a barrel. It had settled down $1.15, as per Reuters.
Therefore, from May 14 till today, diesel prices have risen by Rs 3.37 per litre each in New Delhi and Rs 3.22 per litre in Kolkata. Whereas, Mumbai and Chennai saw the most hikes - by as much as Rs 3.58 per litre and Rs 3.61 per litre respectively.