Fuel prices in India have been a huge talking point for quite some time now. The price of petrol and diesel in the country has been on a constant upswing for the last couple of months. Now, there has finally been some reduction in rates after a very long time. Fuel prices were reduced for the second day today, bringing the price of petrol down to INR 90.78 per litre in Delhi. Meanwhile, the price of diesel currently stands at INR 81.10 per litre in Delhi.
Prices were reduced for the first time yesterday after having remained the same for three consecutive weeks. Compared to yesterday, the price of petrol has gone down by 21 paise in Delhi today. Similarly, diesel saw a reduction in price by 20 paise compared to yesterday. Yesterday was, in fact, the first time that the prices of petrol and diesel have been reduced in an entire year. Fuel prices were last cut on March 16, 2020. Ever since the pandemic and lockdown, prices have only gone up.
Delhi is not the only city which saw a reduction in the prices of petrol and diesel. Fuel prices have gone down between 18-21 paise for petrol and 20-22 paise for diesel across several metro cities. After two consecutive drops in prices, petrol is being retailed for INR 97.19 in Mumbai, INR 92.77 in Chennai and INR 90.98 in Kolkata. Meanwhile, diesel is being retailed for INR 88.20 in Mumbai, INR 86.10 in Chennai and INR 83.98 in Kolkata. The financial capital of India still has the highest prices for fuel in the country.
This reduction in price is believed to have come about due to the drop in the cost of Brent crude oil to $ 63.27 per litre, down from $ 68 per litre. Having said that, it is still unclear if the prices will be reduced further. In fact, the opposite could actually happen. According to some news reports, a massive cargo-container ship called 'Ever Given' is stuck at the Suez Canal after losing power, causing its bow to run aground. This ship has now effectively shut the canal down, further delaying other container ships in the world's busiest waterway.
This will likely lead to global crude prices rising once again. According to reports, upwards of 50 ships pass through the canal each day, including approximately 600,000 barrels of Middle East crude oil bound for the U.S. and Europe. Like it or not, this will almost certainly have an effect on the prices we pay at the pump, for both petrol and diesel.