Currently, petrol prices are at its lowest level in over a year and diesel prices have touched a nine-month low. In Chennai and Kolkata, petrol prices witnessed a hike of 2-22 paise per litre to Rs 71.07 and Rs 70.64 respectively as compared to Rs 70.85 in Chennai yesterday and Rs 70.43 in Kolkata on Sunday. Likewise, diesel rates in these two cities rose to Rs 65.70 and Rs 64.01 respectively on Monday.
Even NCR region such as Noida and Gurugram petrol is being retailed at Rs 69.79 and Rs 69.82, respectively whereas diesel prices went up to Rs 61.93 and Rs 62.54 in Noida and Gurugram respectively. On Sunday, petrol prices remained unchanged whereas diesel became cheaper by 10 paise.
Domestic fuel prices are determined by OMCs in India keeping into consideration various factors including international crude oil prices and value of Indian rupee against US dollar. According to a report by news agency Reuters, Crude oil prices rose about 1 per cent on Monday, on account of optimism which talks could soon resolve the trade war between China and the US, while supply cuts by major producers also supported the market.
In Karnataka, the state government has increased the state tax on both petrol and diesel by 2 per cent effective from January 1. “As the fuel prices declined after fall in crude oil rates in the overseas market since November, the state tax has been revised 2 per cent to 32 per cent on petrol and to 21 per cent on diesel since January 1, 2019,” the statement read.