Petrol and diesel prices: Another day, another paltry reduction

Petrol and diesel prices: Another day, another paltry reduction

Petrol prices were cut for the eighth consecutive day across Delhi, Kolkata, Mumbai and Chennai on Wednesday. Petrol was priced at Rs 80.47 in Kolkata, Rs 85.65 in Mumbai and Rs 80.80 in Chennai on Tuesday. Recent cut in fuel rates in India have come in the backdrop of continuous fall in global oil prices over the week. The main reason for the higher crude oil prices is the sustained production cuts by the Organization of the Petroleum Exporting Countries (OPEC).

The price of petrol at the pumps rocketed by a "hellish" 6p a litre in May - the worst monthly rise for 18 years, the RAC has said.

The burden of isolation contributed to the higher prices, including a lower level of competition, less fuel sold, distance and location factors and lower convenience store sales.

"Unfortunately, the worldwide factors pushing up wholesale petrol prices mean that these higher prices are being passed on to Australian motorists at the petrol bowser".

Recently, Goldman Sachs projected an oil price hike to USD 83 per barrel, Morgan Stanley predicted oil hitting USD 90 per barrel, and Bank of America Merrill Lynch said that crude oil could hit USD 100 per barrel by next year. Since June 1, it has come down by 39 paise for petrol and 28 paise for diesel. Earlier this week, oil minister Dharmendra Pradhan ruled out daily price review of petrol and diesel but said the government was concerned about pinching fuel prices and is working on a long-term solution. Sydney had the lowest average price for the quarter, at 132 cents per litre. The outcome of the meeting of the oil producing countries later this month will determine the future prices of oil.

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