Petrol price cut by 21 paise, diesel by 20 paise

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New Delhi: Petrol and diesel prices were on March 25 cut for the second straight day as international oil prices fell on prospects of speedy recovery in consumption getting clouded by the second wave of COVID-19 cases.

Petrol price was cut by 21 paise per litre and diesel by 20 paise, according to a price notification of state-owned fuel retailers. Petrol now costs Rs 90.78 per litre in Delhi and a litre of diesel comes for Rs 81.10.

Rates have been reduced across the country and vary from state to state depending on the local incidence of taxation (VAT). Prices were reduced by 18 paise a litre on petrol and 17 on diesel in the first reduction in six months on March 24.

Despite bouts of rate freeze, prices had gone up by a record Rs 21.58 per litre on petrol since the government raised excise duty in March last year. Diesel prices had increased by Rs 19.18 a litre.

Prices which last month hit record highs including crossing Rs 100 mark in some places in Rajasthan, Maharasthra and Madhya Pradesh, had been on freeze since February-end when elections to five states including West Bengal, Assam, Tamil Nadu and Kerala were announced.

In Mumbai, the petrol price was cut to Rs 97.19 a litre on March 25 from Rs 97.40 while diesel rates were reduced to Rs 88.20 from Rs 88.42, the price notification showed.

The rate reduction followed international oil prices tumbling to the lowest since early February as the second wave of COVID-19 infection clouded the prospects for a speedy recovery in consumption.