Petrol And Diesel Prices Go Down For The Third Consecutive Day

Fuel prices have been slashed in India for the third consecutive day. As of Saturday October 20, petrol is priced at Rs. 81.99 per litre in New Delhi, Rs. 87.46 per litre in Mumbai, Rs. 83.83 per litre in Kolkata, and Rs. 85.22 per litre in Chennai. On the other hand, diesel is priced at Rs. 75.36 per litre in New Delhi, Rs. 79.00 per litre in Mumbai, Rs. 77.21 per litre in Kolkata, and Rs. 79.69 per litre in Chennai. These revised rates come as a huge relief for the masses, which up until early this month saw petrol rates breach the Rs. 91 per litre mark in India.

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Currently, fuel rate are revised every single day based on the global oil prices. State-run oil marketing companies Indian Oil, Bharat Petroleum and Hindustan Petroleum revise fuel prices with effect from 6 am on a daily basis. Government allowed revision of fuel rates on a daily basis since mid-June last year to reflect changes in costs instantly. Globally, oil prices rose on Friday on signs of surging demand in China, the world's second largest oil consumer, although prices were headed for a second weekly decline on swelling US inventories and concern that trade wars were curbing economic activity, reported news agency Reuters.

Early this month, the central government has decided to cut VAT (Value Added Tax) on petrol and diesel to bring the rates down by Rs.2.5 per litre. Seeing this many States, including Maharashtra and Gujarat had decided to offers cut State VAT as well bringing the price cut on petrol and diesel in these states down by Rs. 5 per litre. However, the Delhi government was among the one who refused to do the same Delhi Petrol Dealers Association (DPDA) has decided to go on a strike to protest against this decision. Therefore, all petrol and CNG (Compressed Natural Gas) pumps in the national capital will remain closed on October 22.