The price of Sunday gasoline was reduced by 20 paise per liter and diesel by 18 paise, the 29th daily reduction in rates that eliminated all the massive price increase seen in two months since mid-August, triggering a political turmoil.
The price of gasoline in New Delhi has been reduced to Rs 76.71 per liter, from Rs 76.91 on Saturday, according to a price announcement released by state-fuel retailers.
Diesel is now being sold at Rs 71.56 per liter, compared to Rs 71.74 on Saturday.
With this, the tariff reduction in the last month totals Rs 7.29 per liter for gasoline and Rs 3.89 per liter for diesel.
Rates have been declining since October 18. This eliminated the entire gasoline price increase in two months from August 16 and more than half in diesel.
The reduction in diesel rates has been slower due to the moderate drop in its international reference prices, according to the oil company's price notifications.
The price of gasoline reached the record of Rs 84 per liter in Delhi and Rs 91.34 in Mumbai on October 4. The diesel that day reached a record high of Rs 75.45 per liter in Delhi and Rs 80.10 in Mumbai.
Prices began to rise as of August 16. Gasoline in Delhi cost Rs 77.14 per liter and in Mumbai it cost Rs. 84.58 on August 15. Diesel that day cost R $ 68.72 per liter in Delhi and Rs 72.96 in Mumbai.
Gasoline in Mumbai on Sunday cost Rs 82.28 per liter and diesel had a price of Rs 74.97.
Between August 16 and October 4, the price of gasoline rose Rs 6.86 per liter and diesel for Rs 6.73.
On that day, the government decided to reduce the consumption tax on gasoline and diesel by R $ 1.50 per liter each and asked state-fuel retailers to subsidize prices by another Re 1 a liter, reducing their margins. Many states, including Maharashtra, have combined this with a reduction in local sales tax or VAT.
Subsequent to this, the price of gasoline fell to Rs 81.50 per liter in Delhi and diesel to Rs 72.95 per liter on October 5. In Mumbai, rates fell to Rs 86.97 per liter for gasoline and Rs77.45 for diesel.
As international oil prices continued to rise, the price of gasoline and diesel in Delhi rose to Rs 82.83 and Rs 75.69 on Oct. 17. In Mumbai, prices reached Rs 88.29 per liter and Rs 79.35 per diesel.
But since then, international oil prices have fallen and the rupee has also appreciated, resulting in declining retail rates.
Industry source said that, according to the assessment, gasoline and diesel retail prices may reign easy in the coming days.
The retail price of gasoline and diesel fuel is dependent on international reference fuel prices and the US rupee-dollar exchange rate. This is because a large proportion of the country's demand is met through imports.