Diesel price cut by 9 paisa today; Chennai rates below Rs 73, check other cities here
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.
Just petrol, diesle price in India has also seen cut in their rates on similar trend, but it will not really bring any relief. The state-owned Oil Companies trimmed diesel price by 9 paisa per litre each in various state capitals of the country. Meanwhile today, petrol price were trim down between 8 paisa to 9 paisa per litre each in the same cities. OMCs have started to bring fuel prices down from May 29 onward after an aggressive 16 days hike, which took diesel prices to a record never witnessed. Interestingly, the new relief is still 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 near Rs 73 per litre, while Kolkata is just marginally away from joining the club of Rs 72 per litre.
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 69.11 per litre, down by 9 paise compared to previous day's price of Rs 69.20 per litre.
Similarly, diesel price in Kolkata was ruling at Rs 71.66 per litre today, which is down 9 paise against previous day's price of Rs 71.75 per litre.
India's financial hub Mumbai saw below of 9 paise in diesel price and is now selling at new price of Rs 73.58 per litre as against Rs 73.67 per litre of previous day.
Chennai which entered in the Rs 73 per litre club after Mumbai, as now seen its price go down by 9 paise available at Rs 72.97 per litre on Saturday, compared to previous price of Rs 73.06 per litre.
Moreover, international crude oil prices retreated on Friday after the dollar rose on better-than-expected U.S. employment data, which pressured greenback-denominated commodities, including crude.
Therefore, as per Reuters report, U.S. West Texas Intermediate (WTI) crude futures fell $1.23 a barrel to settle at $65.81 a barrel. For the week, WTI was on track to drop about 3%, adding to last week`s near 5% decline. Global benchmark Brent fell 77 cents to $76.79 a barrel. It was set for a 0.4% gain for the week.
Therefore, from May 14 till today, diesel prices have risen by Rs 3.27 per litre each in New Delhi and Rs 3.12 per litre in Kolkata. Whereas, Mumbai and Chennai saw the most hikes - by as much as Rs 3.47 per litre and Rs 3.50 per litre respectively.