Relief for common man! Petrol prices have decreased over Rs 7 since last month

The price of petrol and diesel posted their 30th straight daily reduction in rates today, dropping by a further 19 paise and 17 paise, respectively. A litre of petrol now costs Rs 76.52 in Delhi, Rs 77.13 in Bengaluru, Rs 78.47 in Kolkata, Rs 79.46 in Chennai and Rs 82.04 in Mumbai.

These are the cheapest rates since August in Delhi and Chennai. Significantly, it's a Rs 7-9 drop from the record levels touched in early October thanks to falling international oil prices, the strengthening rupee and the government's decision to cut excise duty on petrol and diesel by Rs 1.50 per litre each in October, along with asking state-owned fuel retailers to subsidise prices by another Re 1 a litre.

On the other hand, the price for a litre of diesel stands at Rs 71.39 in Delhi, Rs 71.77 in Bengaluru, Rs 73.25 in Kolkata, Rs 74.79 in Mumbai and Rs 75.44 in Chennai.

These are the lowest prices since early September, and a drop of over Rs 4 since the mid-October peaks. The reduction in diesel rates has been slower due to moderate fall in its benchmark international prices, according to oil company price notifications.

Global crude prices are down almost 25% in the last 40 days due to sluggish demand growth and surging oil supply.

The US government's surprise decision to go easy on its Iran oil diktat for eight countries, including India, and swelling US crude inventories played a big role in dampening prices.

However, the party may not last with international prices now trying to recover from a bear market. Rates rose about 1% today with traders expecting Saudi Arabia to push the Organization of the Petroleum Exporting Countries (OPEC) to cut supply.

Edited by Sushmita Agarwal