Petrol and diesel prices slashed on January 16, 2016

The prices of petrol and diesel have been reduced in India from the midnight of January 16, 2016.

In Delhi, petrol is now priced at Rs. 59.03 per litre, 32 paise down from the earlier price of Rs. 59.35 per litre. Diesel has seen a drop of 85 paise per litre. It now costs Rs. 44.18 per litre against the earlier price of Rs. 45.03 per litre.

This is the fourth reduction in petrol and diesel prices since December 2015. On December 1, the prices of petrol and diesel were cut by 58 paise per litre and 25 paise per litre respectively. December 16 saw the price of petrol reduced by 50 paise per litre, and that of diesel lowered by 46 paise per litre. On January 1, 2016, the price of petrol was slashed by 63 paise per litre, and that of diesel was reduced by Rs. 1.06 per litre.

Prices of crude oil have fallen to less than $30 per barrel. This means that prices of fuel in India could have fallen further. However, the Government of India has increased the excise duty on petrol by 75 paise per litre and on diesel by Rs. 2 per litre, preventing fuel from getting any cheaper. This is the second hike in excise duty this month.

Fuel prices are increased or decreased every fortnight according to international rates and the Rupee - US Dollar exchange rate.