Diwali surprise gift for fuel consumers

Easing Crude Shock

- Petrol pump price up by Rs 8.85 per litre to Rs115.85

- Petrol prices rose on 28 of the previous 36 days

- Diesel prices rose on 30 out of the last 40 days

- It took diesel retail price by Rs 9.90 per litre to Rs106.62

- Brent crude rose to 3-yr high of $85/bbl

- Since Sept 5, Brent crude surged by $10 per barrel

Hyderabad: Vehicle owners have a reason to cheer on Diwali day. According to news agency ANI, the Centre has slashed excise duty on petrol and diesel by Rs5 and Rs10 respectively from Thursday onwards. "On eve of Diwali, Government of India announces excise duty reduction on petrol and diesel. Excise duty on Petrol and Diesel to be reduced by Rs 5 and Rs 10 respectively from tomorrow," tweets ANI.

The reduction in excise duty on diesel is twice that of petrol and it'll come as a booster to the farmers during the upcoming Rabi season, said a senior official.

ANI reported that the excise duty on Petrol and Diesel to be reduced by Rs 5 and Rs 10 respectively from Thursday.

Meanwhile as a Diwali relief, fuel consumers were spared as oil marketing companies decided to keep the retail price of petrol and diesel unchanged on Wednesday in line with slight softening of global oil rates that is expecting OPEC to pump more oil this month.

Accordingly, the pump price of petrol in Delhi remains at Rs 110.04 a litre, while diesel prices also remained at Tuesday's level of Rs 98.42 a litre, according to a price notification of State-owned fuel retailers.

In the financial capital Mumbai, petrol prices remain at Rs 115.85 per litre, while diesel is at Rs 106.62 a litre, the highest among all metros.

Before Wednesday's pause, fuel prices increased for seven consecutive days to take up the rate of petrol by Rs 2.45 per litre in Delhi. Similarly, diesel prices also increased by Rs 2.10 a litre.

Across the country as well, the fuel prices remained static on Wednesday but their retail rates varied depending on the level of local taxes on petroleum products. Diesel prices have increased on 30 out of the last 40 days taking up its retail price by Rs 9.90 per litre in Delhi. With diesel price rising sharply, the fuel is now available at over Rs 100 a litre in several parts of the country. It is very close to breaching the mark even in Delhi where it had rapidly climbed to Rs 98.42 a litre on Monday.

Petrol prices had maintained stability since September 5, but oil companies finally raised its pump prices last week and this week given a spurt in the product prices lately. Petrol prices have also increased on 28 of the previous 36 days taking up its pump price by Rs 8.85 per litre.

Crude price has been on a surge rising over three year high level of over $85 a barrel now as global demand remains firm, while OPEC+ continues to move slowly on increasing production. It has fallen a bit to around $84 a barrel after China released some oil from its reserve to address supply concerns.

Since September 5, when both petrol and diesel prices were revised, the price of petrol and diesel in the international market is higher by around $9-10 per barrel as compared to average prices during August.