Hyderabad: Petrol and diesel prices were slashed on Tuesday for the second time in a week.
The petrol price on Tuesday was slashed by 23 paisa, while the diesel price was slashed by 25 paisa. A liter of petrol now sells at Rs 94.16, while diesel costs Rs 88.20 per liter.
This is for the third time in a week when the government has slashed the fuel prices.
On March 24, the petrol price was slashed by 18 paisa. On March 25, it was slashed by 22 paisa. Similarly, diesel price was slashed by 19 paisa on March 24. A day later on March 25, it was slashed by another 22 paisa.
The marginal decrease in prices comes against the backdrop of softening international crude prices.
Meanwhile, crude oil fell by 1% on Monday after a ship that had blocked the Suez Canal for nearly a week was refloated.
The petrol price in Visakhapatnam was slashed by 29 paisa. A liter of petrol costs Rs 95.80 in Visakhapatnam. The diesel price was slashed by 30 paisa. Diesel now sells at Rs 89.32 per liter in Visakhapatnam
Petrol and Diesel prices in Andhra Pradesh have been slashed six times in the last 10 days. It was also increased four times. On Monday, the petrol price increased by 35 paisa.
Domestic petrol and diesel rates vary across the states due to the value-added tax (VAT). The bigger reason behind India's exorbitant petrol and diesel rates is the high fuel tax levied by the Centre and state governments. It may be noted that nearly 60% of the price of petrol and diesel in India comprises taxes.
Oil marketing companies - Bharat Petroleum, Indian Oil Corporation and Hindustan Petroleum - align the prices of domestic fuel with global benchmarks by taking into account any alterations in the foreign exchange rates. Any changes in fuel rates are implemented with effect from 6 am each day.
The fuel price cut this month is the first in 2021. The drop in international oil prices is due to the fears of the second COVID-19 wave.