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Petrol, diesel prices slashed

State-run oil companies on Friday slashed petrol and diesel prices by 68 to 81 paise per litre, effective Friday midnight.

Petrol would cost Rs 29.57 per litre in Delhi as against the prevailing Rs 30.26 a litre while diesel prices have come down from Rs 19.25 to Rs 18.57 per litre, official sources said in New Delhi.

Oil companies announced reduction in petrol and diesel prices following a fall in international crude oil prices.

Indian basket of crude oil averaged $23.36 a barrel this month as against average procurement price of $26.65 per barrel in the second half of October.

PETROL
 

	New prices    (Rs/litre)	Current prices    (Rs/litre)	Decrease    (Rs/litre)
Delhi	29.57	30.26	0.69
Kolkata	31.01	31.67	0.69
Mumbai	34.23	34.98	0.75
Chennai	32.05	32.80	0.75

DIESEL
 

	New prices    (Rs/litre)	Current prices    (Rs/litre)	Decrease    (Rs/litre)
Delhi	18.57	19.25	0.68
Kolkata	19.96	20.74	0.68
Mumbai	23.57	24.56	0.81
Chennai	20.43	21.18	0.75

During October, the average price of Indian basket of crude was $26.89 per barrel.

Petrol prices in Kolkata have been reduced by 69 paise to Rs 31.01 per litre while in Mumbai a litre of petrol would cost Rs 34.23 as opposed to prevailing Rs 34.98. Chennia also saw a 75 paise per litre reduction in petrol prices to Rs 32.05.

Diesel prices in Kolkata fell from Rs 20.64 to Rs 19.96. In Mumbai, the fall was of 81 paise per litre to Rs 23.57 while that in Chennai, diesel prices fell from Rs 21.18 per litre to Rs 20.43 a litre.

As per the mechanism evolved after dismantling of the administered pricing mechanism this fiscal, oil companies are to fix consumer retail price for petrol and diesel on 1st and 16th of every month based on the average procurement cost of crude during the fortnight.

Benchmark brent crude has fallen from $27.31 a barrel in second fortnight of October to $24.21 a barrel this month.

State-run oil companies, which maintained the price line last fortnight with steady trend in international markets, had raised petrol and diesel prices by up to Rs 1.50 per litre each since September.

The Indian basket of crude oil has averaged $27.86 a barrel during the first one and half months of third quarter as against $26.13 per barrel in July-September quarter.

In accordance with the mechanism evolved by oil companies to review prices of petroleum products every fortnight after dismantling of the APM, officials of Indian Oil Corporation, IBP, Bharat Petroleum and Hindustan Petroleum met today to match retail price of motor spirit and high speed diesel (HSD) with import parity price.

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