Fuel prices receive 3% cut, first time in two months

In wake of the reduction in the international crude oil prices, the Aviation Turbine Fuel (ATF) or jet fuel came down by 3%. This is the first reduction in two months.

The price of ATF after a reduction of Rs 1,887 per kilolitre has come down to Rs 58,374, as per the price notification issued by the oil marketing companies.

The cut is announced for the first time after the increase in ATF price four times since February. Earlier, on February 1, the price of jet fuel was increased by Rs 3,246.75 per kiloliter. Later in the month, the price was hiked by 3.6 percent on February 16,  and 6.5 percent on March 1. Once again on March 16, its price was increased by Rs 860.25 per kiloliter. 

On the other hand, petrol and diesel prices remained steady for the second consecutive day. There is hope that petrol and diesel prices may come down drastically in the coming times. In fact, the Organization of Oil Exporting Countries (OPEC) and partner countries have agreed to increase oil production gradually.

OPEC says that it has decided to increase production by 2 million barrels per day from May to July. These steps are being taken in view of the global economy recovering from the COVID-19 pandemic. OPEC countries had cut production, due to which the prices of crude oil started rising.

Petrol and diesel prices were cut three times in the month of March. Petrol became 61 paise cheaper and diesel prices were reduced by 60 paise. Now, there has been no change in prices for three consecutive days. The biggest reason for the three times cut in petrol and diesel prices in March is the weakness of crude oil in the global market. 

In just three weeks, crude oil has come down by more than 10 percent. The price of crude oil has come down from a high of $71 per barrel to close to $64 per barrel. Earlier in February, petrol and diesel became expensive 16 times. However, petrol and diesel prices are still at record highs.