Oil companies cut petrol and diesel prices by Rs. 2.41 and Rs. 2.25 a litre respectively with immediate effect on plunging global crude oil costs, a move that will aid government’s efforts to keep inflation low and stable.<br /><br />Lower inflation, in turn, could prompt the RBI to cut interest rates and nudge banks to lower home loan EMIs.<br /><br />Since August, petrol has turned cheaper by Rs. 9.36 a litre in six price cuts, while diesel prices have been cut twice by Rs. 5.62 a litre in less than 15 days.<br /><br />The latest diesel price cut follows the Rs. 3.37 a litre reduction on October 18, when in a reformist move, the government lifted state controls on diesel prices, allowing oil companies to fix the fuel’s pump-gate prices based on global crude oil costs.<br /><br />Petrol will cost Rs. 64.25 a litre in Delhi and Rs. 71.91 in Mumbai. Diesel, which is India’s most consumed fuel, will now cost Rs. 53.35 per litre in Delhi and Rs. 61.04 in Mumbai.<br /><br />Prices vary between states due to local levies. India imports two-thirds of its energy need, making oil prices a key factor for inflation.<br /><br />India’s wholesale inflation rate plunged to 2.38% in September, the lowest in five years, while retail inflation fell to 6.46%, the lowest since 2012.<br /><br />The cut in prices of diesel will bolster the government’s plans to tame inflation and cut subsidies.<br /><br />A lower subsidy bill will eventually help govt cut taxes on petro products. This, in turn, will help offset shocks when global crude prices shoot up.<br /><br /><br />For More information on this news visit: http://www.itvnewsindia.com/<br />For More information on this news, visit: http://www.itvnewsindia.com/hindi<br />Connect with us on Social platform at: http://www.facebook.com/InformationTV<br />Subscribe to our You Tube channel: https://www.youtube.com/user/itvnewsindia
