Petrol and Diesel to cost cheapest in a long time

The prices of Petrol and Diesel will be at their lowest today onwards.

Believe it or not, but it has happened again. State run Oil Marketing Companies (OMCs) have slashed the fuel prices in India by two rupees a litre. This also means that the price of petrol will be at its lowest in the last 45 months and diesel in 17 months. This is the fourth time since October 18, when the government decided to deregulate diesel prices, that the prices of diesel have gone down. This is also the eighth time in the last four months when the petrol prices have gone down.

The last price cut happened 17 days ago when companies cut petrol prices by 91 paise a litre and diesel by 84 paise a litre on November 30. These miraculous developments can be blamed on falling international oil rates.

"The international prices of both petrol and diesel have continued to be on a downtrend. The rupee dollar exchange rate has however appreciated since the last price change. The combined impact of both these factors warrant a decrease in retail selling prices of both petrol and diesel," Indian Oil Corp (IOC) said in a statement.

Experts also say that the price cut could have been more than two rupees, but didn’t happen because of the decline in the value of rupee against dollar.